Reinsurance rates to increase as reinsurers shift views of risk
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Analysts at U.S.-based Morgan Stanley & Co. LLC expect further increases in reinsurance rates as reinsurers shift their views of risk amid growing uncertainty, Artemis reported. The analysts said that capital availability is not an issue and is not driving the rate hikes; however, the COVID-19 uncertainty, higher catastrophe losses, increased litigation, persistently low investment yields and concerns about casualty prior year reserves could be driving the need for higher returns and in turn the reinsurance pricing.
