Search

The insurance market is experiencing a healing process as higher prices and lower interest rates attract more capital into reinsurance. This influx of capital has given reinsurers the upper hand in pricing negotiations, allowing them to relieve the troubled insurance market. Global reinsurers have seen a significant increase in return on equity, while primary carriers have faced higher reinsurance costs. As more capital flows into reinsurance, it is expected to alleviate pricing pressure and make coverage more affordable for policyholders. Additionally, the concept of reinsurance for reinsurers, known as retrocession, is helping to unclog the coverage market and provide added protection to primary insurers. [Extracted from the article]