Global Reinsurance Pricing Comes Under Pressure

Morgan Stanley (NYSE:MS)’s take from the Global Reinsurance meetings in Monte Carlo is that reinsurance pricing would continue to trend lower, and as at January 1, renewals could be down from 0-15% on pricing.

Reinsurance busniess

January 1 renewals account for over 50% of annual reinsurance business, and this is an early indication of a decline in pricing power through 2014, subject of course, that there is no major loss event of a size larger than $50B.

It may be noted that the outlook for 2014 builds upon a previous loss of pricing power witnessed in 2013 when Superstorm Sandy failed to set off pricing...