The reinsurer said that, in Germany, the insured losses in the first half of 2022 alone surpassed the multi-year average, driven by damaging winter storms Ylenia, Zeynep and Antonia.
The claims total from the three storms has been estimated at EUR1.4bn ($1.4bn) by the German Insurance Association.
Meanwhile, both insurers and reinsurers are facing a “sharp rise” in inflation which, combined with loss activity, was impacting profitability.
E+S Rück anticipates this will lead to significant pricing increases in the property line, extending beyond pure catastrophe covers.
In industrial and commercial lines, the reinsurer said the pressure for remediation “remains undiminished”.
Supply chain challenges and “gloomier economic prospects” are weighing on companies, whilst, in BI lines, longer repair and adjustment times are likely to be reflected in adjustments to the scope of coverage and conditions.
A reduction of capacity in the cyber market is driving improved pricing, following increased losses and a rise in risk awareness.
E+S Rück CEO Michael Pickel said: "While the images of last year's devastating flooding still remain very much in all our minds, the winter storms, droughts and wildfires experienced this year show that Europe is seeing an increased prevalence of natural disasters.
“All this makes further price rises in both original and reinsurance business indispensable."
