After a Succession of Catastrophes, a Pause Before Impact

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In this A.M.BestTV episode, speakers at A.M. Best‘s
2017 Insurance Market Briefing – Europe & Methodology Review Seminar in
London outline a range of opinions on pricing following the spate of
2017 catastrophes. Click on http://www.ambest.com/v.asp?v=imbe1117
to view the entire program.

Topics also discussed at the briefing include the issue of
protectionism, merger and acquisition activity, A.M. Best’s Credit
Ratings outlook and the recent adoption of A.M. Best’s updated global
methodology.

“It’s an opportunity for A.M. Best to review the last 12 months and give
some thoughts toward the next 12 months,” said Nick Charteris-Black,
A.M. Best managing director of market development, EMEA. “It is also an
opportunity for A.M. Best to showcase the market research that we’ve
worked on throughout the past year.”

Insurance executives participating in the market briefing said they
expect the losses generated by hurricanes Harvey, Irma and Maria and
other catastrophes to lift rates across the industry.

“January 1 is a major date for reinsurance renewals and those
negotiations are ongoing at the moment. It is not yet clear how much
prices will rise, but clearly that prices will rise for loss-affected
contracts,” said James Few, global managing director of reinsurance at
MS Amlin.

However, A.M. Best Chief Rating Officer Stefan Holzberger, who took part
in a panel exploring the reinsurance industry, said the catastrophes may
not turn the market away from the current soft conditions.

“This probably won’t be a long-term catalyst to improve the pricing
environment and because of that it may not be that kind of beginning
point for hard-market conditions, which frankly would be a good thing
for the industry,” said Holzberger. “We’re just not sure we’re going to
see that in 2018 and beyond.”

Other people that appear in this episode:

  • Jon Hancock, performance management director, Lloyd’s;
  • Mike Van Slooten, international head of market analysis, Aon Benfield;
    and
  • Mark Geoghegan, managing director, Insurance Insider.

Visit http://www.ambest.tv/imbe17
for full coverage of the event, with exclusive interviews with key
executives at the briefing.

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reports, targeted topics and key developments in the (re)insurance
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. ALL RIGHTS RESERVED.

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