Monte Carlo and Baden-Baden will not see rates soar
Few costly disasters and stock market recoveries will stop Munich Re and Swiss Re raising property and casualty prices in Monte Carlo this weekend and Badan-Baden in October, Bloomberg reports.
“Reinsurers will find it hard to argue for major rate increases next year as the 2009 hurricane season has been extremely quiet,” said Markus Engels, who helps manage about $440m at Allianz Global Investors. “I would expect stable or slightly higher prices next year.”
“Primary insurers are not as much at the mercy of reinsurers as they were a year ago,” said Ben Cohen, analyst with Collins Stewart. “The third quarter looks to be another period of improvement.”
Less upward pressure
“Rates haven’t fully recovered from the declines seen in 2008 and 2007,” said Chris Klein, global head of business intelligence at Guy Carpenter in London. “Rates for property reinsurance as well as for casualty reinsurance are expected to be flat next year.”
Swiss Re spokeswoman Simone Lauper said: “There may not be as much upward pressure on rates and volumes as there was last year.”
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