REINSURANCE MARKET LOOKS TO MODERATE RATE HIKES AT JANUARY 1

With the July renewals finished, the market is looking ahead to more moderate rate increases at January 1, 2021. One top London market broker told Insurance Day that he is forecasting average reinsurance rate rises in the high single digits at January 1, assuming average losses from this year’s hurricane season. “If I had to guess, I would say 1/1 would be up 5% to 10%,” the broker said. Industry insiders and rating agencies are also predicting rate rises into 2021. Upward pressure on rates would be exacerbated by a very active hurricane season. Most modelling firms expect the market will see above-average losses, on top of the losses from Covid-19.