AM Best said the key question for reinsurance dynamics is whether competition becomes irrational in the market
Reinsurance inflection - Will irrational competition emerge?
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Reinsurance inflection – Key question is whether irrational competition emerges: AM Best
The global reinsurance market is at an inflection point after consecutive strong year’s of underwriting returns have driven robust capital generation, while inflows continue to grow the insurance-linked securities market and alternative forms of capacity, which leads AM Best to call this an inflection point and ask if pricing discipline will last.
With reinsurance capital across the market now at record levels, the rating agency says the key question is, “whether reinsurers can maintain underwriting discipline or will irrational competition emerge leading to another traditional soft market cycle.”
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