Rates

A new market survey sheds light on the disparity in pricing and approaches to ransomware as the cyber market remediates.

The Hannover Re subsidiary said the event would incur insured losses in Germany alone of “well in excess” of EUR8bn.

While much of the conversation surrounding inflation lately has focussed on the threats, last week’s Inside P&C North America conference brought the other side of the coin back into focus.

Increasing cat losses, combined with social inflation, put ESG and climate change at top of the mind even as the market sees strong growth, says Guy Carpenter’s John Trace.

The broker expects a slowdown in price rises to continue for the rest of the year.

The state body supporting earthquake cover has seen risk transfer requirements swell over the past decade.

“When you deploy property aggregate, the return you need on that is meaningful in light of the risk that you’re assuming,” Zaffino said Thursday. “I’m not sure if a plus mid-single digit [rate increase] gets you there in light of the [loss activity] we’re looking at.”

The Convex CEO said that the reinsurance market was yet to accept the true scale of its Covid-19 exposure.

Reinsurance market tightening and loss ratio deterioration are two factors fueling momentum in cyber rates.

Moody’s expects RMS, which had about $320mn in revenue around $55mn in operating income last year, to become accretive to earnings by 2025.

Adjusted for large renewals and IPOs, the pricing index rose 7.7% in the second quarter.

RenRe CEO Kevin O’Donnell said cyber reinsurance rates were two fifths higher in Q2 than during the same period last year.