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Alternative capital to continue to influence reinsurance pricing: Fitch

Posted On: Dec. 13, 2017 4:26 AM CST

U.K.-based Fitch Ratings Ltd. said that alternative capital, insurance-linked securities and collateralized reinsurance is likely to maintain its influence on global reinsurance pricing, as a "key driver of the magnitude of future rate increases," reports. The ratings agency said that the ILS market is expected to lose $10 billion following the recent catastrophes and more capacity will be lost for deployment purpose at the January 2018 renewals due to collateral trapping. Reinsurance demand is likely to rise as a result of the losses with insurers expected to buy more aggregate protection, Fitch added.

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