Morgan Stanley expects sustained reinsurance rate growth

Analysts at U.S.-based Morgan Stanley & Co. LLC expect sustained reinsurance rate growth driven by elevated catastrophe losses, low investment yields, COVID-19 uncertainty, higher litigation costs, social inflation, and concerns around prior year reserves, Reinsurance News reported. As they analyze the pricing trends ahead of mid-year renewals, the analysts do not expect reinsurers’ margin gains to be as pronounced as the primary carriers due to some of the aforementioned reasons.

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