Be prepared for another asbestos, says Fitch insurance director
Reinsurance rates will continue to rise for at least 18 months, with further large losses expected.
Fitch Ratings insurance director Chris Waterman said the biggest rate increases would be in property, business interruption and aviation.
Waterman was speaking at Fitch's European insurance roadshow last week.
"Because they've come from such a low level, we're only just now looking at rates that are break-even or slightly better," he said.
"There's a long way to go."
Waterman said further "unexpected losses were to be expected".
"We should be prepared for another large catastrophic event and another asbestos," he said.
He predicted continued consolidation in the market, and said the ideal time for new entrants had passed.
Start-ups brought $8.7bn (£5.5bn) new capital into the market since 11 September 2001, bringing total new capital to $20.7bn (£13bn).
However, Waterman said early evidence suggested the new players were not particularly competitive.
Meanwhile the market had seen two divestments, one insolvency and five run-offs, while seven reinsurers had increased their reserves.
"There has been continued withdrawal by those whose core business is not reinsurance, due to the amount of capital required," Waterman said.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
