The agency "Moody's", that does not expect a reinsurance market rebound in the next 12 to 18 months, has confirmed its negative outlook for the sector in 2015.
In its Memo of the 5th December, the rating agency believes "that the sector will be more and more facing a market where buyers will choose reinsurers and alternatives to traditional reinsurance". The current pressure on fares and excess capacity of the market might not be the only reasons of this situation, more strucural causes (cheaper substitutes or change of buying behaviour) might be responsible too. In this respect, the biggest reinsurers will be the most successful, warned Moody's.
According to the agency, the persistency of this market state should lead to a 10%-decrease of disaster-fares in 2015.