LONDON, July 1 Reinsurance broker Willis Re said
on Tuesday it expected reinsurance rates to come under further
pressure as "excess capital continues to chase muted demand".
The trend has been compounded by "benign" loss activity in
the first half of the year and continues the trends seen at
reinsurance renewal points in January and April, it added in its
'1st View Renewals Report'.
"The tentacles of the softening market are spreading far and
wide, with no immediate signs of relief. We've seen muted demand
throughout 2014 and market dynamics are unlikely to change for
some time to come," said Willis Chief Executive John Cavanagh.
Cavanagh said the current market position was "increasingly
challenging" for reinsurers.
"Below average loss ratios in the first half of 2014 and
reasonably adequate reserving positions mean that, barring any
major underwriting or investment losses in the coming months, we
will see another year of reasonable returns. This places further
pressure on rating levels for 2015," he added.
(Reporting by Simon Jessop; editing by Nishant Kumar)