Renewed partnership for insurers and reinsurers
Aon Benfield has reported that the partnership between insurers and reinsurers has been renewed, with reinsurers now lowering rates at the same pace, or greater, than insurers.
In its 2011 Reinsurance Market Outlook report, the firm also states that both reinsurers and insurers are enjoying fully recovered balance sheets, but quite limited growth in demand for their products.
Aon therefore recommends that insurers and reinsurers “now need to partner to create new demand generating products and innovations on existing products”.
According to the group, total global reinsurance capacity increased by 17% in the first nine months of 2010, reaching a record high of $470 billion by the third quarter of 2010.
Aon Benfield Analytics chairman, Bryon Ehrhart, comments: “With capacity at record levels, pricing has been reduced to allow reinsurance to be the most accretive form of underwriting capital for insurers in 2011.”
Category: Aon News, Insurance News
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