Dr. Michael Pickel, Chief Executive Officer of E+S Rück even more described, “After the dreadful serious weather occasions of June and July, 2021 will go down as one of the costliest years ever for the German market. We extend our compassions to everybody who has actually been and continues to be affected by the dreadful flooding. As a reinsurer, we are mindful of our obligation and will play our part in conquering the damage.
For the 2nd year running, Hannover Res German subsidiary E+S Rückversicherung AG has anticipated increasing reinsurance costs at the renewals, but this year its down to the significant disaster losses suffered.A year back, Hannover Res subsidiary said that German reinsurance rates would rise at the January 2021 renewals, but that was seen as down to capacity and global market conditions, along with COVID-19 and low interest rates.
There were some rises, but it was really just in pockets through the 2021 renewals, where when it comes to the January 2022 agreement signings, Hannover Re is expecting broader firming driven by natural disaster losses.
E+S Rück stated it, “expects higher costs– in some areas markedly so– and enhanced conditions in home and casualty reinsurance on the German market following the devastating flood damage in the summer.”
Dr. Michael Pickel, Chief Executive Officer of E+S Rück even more described, “After the horrible severe weather occasions of June and July, 2021 will go down as one of the costliest years ever for the German market. We extend our compassions to everybody who has actually been and continues to be affected by the devastating flooding. As a reinsurer, we know our duty and will play our part in overcoming the damage.
” It is our expectation that lots of insurers will even more broaden their reinsurance security in the wake of these most current losses. Following on from the considerable strains incurred last year from the Covid-19 pandemic, the current bad weather condition losses, low interest rates and rate increases in the building market will cause a considerable boost in reinsurance costs.”
Considerable changes are expected to both prices and conditions at the renewals, with catastrophe reinsurance covers expected to see the steepest increases in cost.
Motor insurance coverage claims due to hail and flooding have actually driven that side of the organization to deliver worse outcomes compared to the previous year, suggesting “we do not see any space for rate cuts in initial organization or in the reinsurance market.”
While 2021 has been among the most damaging years ever for the German insurance and reinsurance market, the pandemic is anticipated to also have impact at the January 2022 renewal season.
E+S Rück said that, “Losses and prospective losses for programs linked with Covid-19 could often be priced just minimally into the previous renewals since it was not yet possible to definitively solve the scale of pandemic losses and the question of coverage under the reinsurance treaties. The pandemic-related pressures for some consumer relationships have increased even more, which indicates that in these cases additional adjustments will be required for the reinsurance treaties in the 2022 renewals.”
Other issues include, greater claims frequency in industrial losses over the year, in addition to quiet cyber and how that is thought about in reinsurance treaties.
The company said, “Overall, E+S Rück considers higher rates in the reinsurance market for industrial and commercial risks to be essential, specifically under loss-impacted programmes. On the conditions side, too, adjustments are needed for pandemic-related and cyber threats if they have actually not currently been implemented.”
” Just as we stood shoulder to carry with our consumers and their insureds during the pandemic, we continue to do this in the aftermath of this summer seasons devastating flood catastrophes,” Dr. Michael Pickel commented.
” This year, as in the past, we shall deal with our clients to find options that identify our entire service relationship, whether it be through standard reinsurance, tailor-made solutions or the development of innovative protection concepts. With this in mind, I look to the present renewals with self-confidence.”