MARINE REINSURANCE RATES 'COULD FALL AT UPCOMING RENEWALS'

Some loss-free reinsurance programmes, notably in marine and cargo, could see rate reductions at the upcoming January 1, 2022 renewals, analysts have predicted. The summer renewals saw rate increases in most cases, although with wide variations in rate movements across programmes. Portfolios with poor loss experience saw substantial increases, with some Florida programmes renewing up between 10% and 30%. UBS said it expects similar trends to prevail at the upcoming renewals, with loss-affected lines and programmes where loss experience has been elevated in recent years renewing with low double-digits rate increases. However, the analysts added, given the slowing momentum of rate increases and the high capacity levels of the sector, some programmes could see flat renewals and possibly even rate declines, pointing in particular to marine and cargo.