While Climate Change Could Drive Reinsurance Volume Long Term, Softening of Reinsurance Market Is More Important Medium-Term
Climate change is driving a long-term increase in reinsurance demand as rising global temperatures and more severe natural catastrophes lead to higher economic and insured losses. While the frequency of catastrophic events has stabilized, their severity continues to grow.
Despite this, the reinsurance market is currently overcapitalized, resulting in a softening cycle characterized by declining risk-adjusted prices and stagnating profits, particularly in property and casualty segments, with natural catastrophe coverage most affected.
Our latest research identifies which European reinsurers are less exposed to climate risks and more likely to deliver stronger returns. Download the report.
What’s inside:
- How climate change is shaping reinsurance volumes and profitability
Which reinsurers face higher catastrophe risk exposure, and how that affects performance
Which companies demonstrate stronger risk management and better return potential