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Hannover Re Sees Price Increases In Property And Casualty Reinsurance

Hannover Re said that it expects to see significant price increases spanning the various lines of property and casualty reinsurance in the treaty renewals as at 1 January 2021.

Hannover Re expects profitable growth opportunities across a broad front.

For both insurers and reinsurers, 2020 remains dominated by the ongoing Covid-19 pandemic and the associated losses as well as by the sustained low interest rate environment and resulting impacts on profits, the company said in a statement.

In both the primary and the reinsurance market, technical profitability will move centre stage on a lasting basis - also with a view to preserving the industry's future risk-bearing capacity. Against this backdrop, rate increases are absolutely essential, the company said.

Business in Germany has been significantly shaped by Covid-19, among other factors, over the course of the year.

For 2021 Hannover Re anticipates sharply lower growth in the primary insurance market compared to prior years.

In the United Kingdom and Ireland appreciable market hardening can be observed among primary insurers.

In France price increases are to be anticipated on the primary insurance side. This can be attributed to the continued decline in income from investments as well as the sustained level of claims expenditure.

The primary insurance market in North America continues to develop favourably, notwithstanding the uncertainties associated with Covid-19 and the resulting economic constraints.

The growth trend in demand for primary insurance covers in Central and South America is set to continue, even against the backdrop of the current pandemic. Natural catastrophe risks and social unrest have caused a surge in demand for high-quality risk protection in Latin America.

Hannover Re said it looks ahead with optimism to the upcoming renewals as at 1 January 2021 and 1 April 2021 in the Asia-Pacific markets, even though price movements will likely vary from region to region depending on the burden of losses.

For the 2021 round of renewals Hannover Re anticipates stable reinsurance conditions and an improved pricing structure.

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