Anybody keeping even a vague eye on the reinsurance media and the commentary coming out of the brokers will be aware of one thing: Reinsurance pricing seems to be going through the floor. Executive SummaryWith reinsurance prices dropping below sustainable levels, analyst Stuart Shipperlee offers strategies for riding out the soft market, including following Platinum’s lead and accepting reduced volume until the market turns.
The headlines may overstate the full severity of how this will play out across the total book of any given reinsurer, not least because few are “pure play” reinsurers, and some of those that are pure reinsurers have areas of operations (e.g., geographic, line of business or client segment specializations) where pricing can be more easily defended.