Insurance, reinsurance rates and premiums to go up in 2013: Swiss Re
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Rates and premium volumes for nonlife insurance and reinsurance are likely to increase in 2013, according to a study by Swiss Re Ltd.
While the global economy remains weak, an improving housing market in the United States, fiscal and monetary stimulus in China and a slow turnaround in the eurozone are expected to boost economic growth in 2013, according to Zurich-based Swiss Re. And this improvement should benefit insurers and reinsurers' results, Swiss Re said in the study.
Nonlife premium volume in primary insurance grew slightly in 2012, Swiss Re said, and this growth is expected to continue into 2013 as rates rise moderately.
While rates for most primary nonlife insurance lines were stable or subject to slight increases in 2012, this was not enough to compensate for reduced investment yields, Swiss Re said. Underwriting results, however, improved in 2012 compared with 2011, it said.
Adverse reserve developments are expected in 2013, and this likely will prompt an increase in the pace of rate increases, particularly in casualty lines, according to the report.
The reinsurance market is expected to follow trends seen in the primary sector, although reinsurers' greater exposure to natural catastrophes — particularly Superstorm Sandy — than their primary counterparts likely will produce a negative underwriting result for 2012, the report noted.
The report, “Global Re/insurance Review 2012 and Outlook 2013/14,” is available at www.swissre.com/sigma
