Swiss Re sees stable nat cat pricing rates in 2014
ZURICH, Sept 9
ZURICH, Sept 9 (Reuters) - Swiss Re said it expects natural catastrophe pricing rates to stabilise in 2014 after a decline this year, while demand for nat cat cover will double by 2020 in high-growth markets.
The Swiss reinsurer, whose business is to help shoulder the risks faced by insurers in exchange for part of the profit, said its business model was not challenged by increased competition from alternative capital.
Reinsurers have seen their pricing power diminish and their relevance threatened as investment funds seeking higher yields have funnelled billions of dollars into "catastrophe bonds", sold by insurers to share the risk they take on for natural disasters. (Reporting by Alice Baghdjian)