Reinsurance demand growing with P&C cession ratio up
Publish Date:Posted almost 8 years ago
Demand for reinsurance has grown over the past 18 months, with the cession ratio in the global P&C sector achieving a small rise. This trend is predicted to continue for the remainder of the year, according to Aon's reinsurance market outlook report. CEO of Aon Benfield, Eric Andersen said: “The catalysts for this increased demand for property and casualty reinsurance include factors such as the emergence of poor underwriting results in certain casualty classes, out-sized losses from regional exposures, and the introduction of the Solvency II regulatory regime across the European Union.” The report identified four key areas of growth for the (re)insurance industry, cyber, property catastrophe, crop and mortgage. On crop, the report said “while a more mature market, crop (re)insurance has returned to profitability in the US. Growth has mainly emanated from Asia with the Indian market seeing five times the insurance premiums for the 2016/2017 season compared to the year prior”.
