The trend of rising reinsurance premiums, driven by high claims payments related to the coronavirus pandemic and a record hurricane season, is continuing as the next policy renewal round looms on July 1, Swiss Re said on Thursday.
The head of the Zurich-based group’s reinsurance division Moses Ojeisekhoba told a media event that the trend appeared to be “travelling along the same lines as April 1 and January 1”, when contracts were most recently renewed.
“We do not see any market differences at this point in terms of trends,” Ojeisekhoba said.
He said it was too early to make a forecast for the next policy renewal round in early July.
Swiss Re, industry leader Munich Re and other reinsurers were able to push through price increases during contract renegotiations in January and April and are using this to expand their business.
In contract renewals in April, Swiss Re increased premium volume in property and casualty insurance by a fifth and achieved a 4% price increase. Munich Re underwrote 17% more business, with prices rising by an average of 2.4%.