Property catastrophe insurance rates to drop at Jan. 1 renewals: Swiss Re
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LONDON — Property catastrophe reinsurance rates likely will continue to fall at the upcoming Jan. 1 renewals, but the rate of decrease at subsequent renewals is likely to slow, according to a report by Swiss Re Ltd.
Speaking at a briefing Tuesday in London, Kurt Karl, chief economist at Swiss Re, said a lack of large catastrophe losses and plentiful capacity mean that rates for property catastrophe reinsurance, notably in the United States, likely will continue to fall at Jan. 1.
But other factors such as reinsurers' diminishing reserves after several large releases, low investment returns and the prospect of claims inflation may temper rate decreases in renewals during 2015, he said.
For casualty and speciality lines, Swiss Re expects significant decreases by market and line of business, Roman Lechner, senior economist at Swiss Re, said during the briefing.
Rates for primary insurance lines likely will be affected by macroeconomic factors as well, Mr. Lechner said.
Rate increases in U.S. commercial lines business that were seen over the past two years or so now are being tempered, he noted.
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