Market News

Hard Market Conditions Predicted to Continue through 2024, RBC Capital Markets Forecasts Additional Rebalancing

Additional, Capital, Conditions, Continue, Forecasts, Hard, Market, Markets, Predicted, RBC, Rebalancing

The resilience of the hard market is anticipated to extend well into 2024, with RBC Capital Markets predicting a continued rebalancing that promises intriguing opportunities for insurers and investors alike.



Analysts at RBC Capital Markets predict that the hard reinsurance market environment will continue into 2024, as the industry strives to achieve sufficient returns. According to RBC, there will be a rebalancing of the insurance value chain between primary insurers and reinsurers, as both recognize the unfairness of how losses were shared in the past.

The 2023 renewals brought about significant changes and disruptions, as reinsurers aimed to focus on absorbing shocks from large events rather than earnings events, which they believe should be handled by the primary market. However, heading into 2024, reinsurers’ expectations seem to be better aligned and more predictable.

RBC’s outlook suggests that rate increases in 2024 will range from flat to +5% on a risk-adjusted basis. Reinsurers can also anticipate further adjustments to terms and conditions, favoring their interests.

Analysts also note that renewal volumes may have been affected by primary players’ tighter reinsurance budgets and the preference for excess of loss contracts over quota shares, as reinsurance firms have more pricing autonomy in the former.

Looking ahead, analysts foresee an increase in demand for reinsurance, driven by a resurgence in primary rates and potentially heightened risk aversion. The supply and demand imbalance is particularly felt in the area of natural catastrophe risk.

In conclusion, the reinsurance market is expected to remain challenging in the coming years, with reinsurers and primary insurers working to establish a fairer distribution of losses. Adjustments in rates, terms, and conditions will continue, and demand for reinsurance is likely to rise as primary rates increase and risk aversion intensifies.

Sources:
– RBC Capital Markets: https://www.rbc.com/

  • Savor the Flavor: Discovering the Best Tex Mex in San Antonio

    Savor the Flavor: Discovering the Best Tex Mex in San Antonio

    Welcome to a tantalizing culinary journey through the vibrant flavors of Tex Mex cuisine in San Antonio. From sizzling fajitas to cheesy enchiladas, our city is home to some of the best Tex Mex eateries that will have your taste buds dancing with delight. Join us as we explore the delicious dishes that have been…

  • Study: Biden’s Student Loan Cancellations to Add $559 Billion Burden on Taxpayers

    Study: Biden’s Student Loan Cancellations to Add $559 Billion Burden on Taxpayers

    A recent study has revealed that President Biden’s plan to cancel student loan debt could end up costing taxpayers a staggering $559 billion. This news has sparked debates among policymakers and taxpayers alike, as many question the potential financial burden this may place on the country. With student loan debt at an all-time high, the…

  • Bitcoin Halving Event Creates Speculation of Major Price Surge – Experts Predict Record-Breaking Rally

    Bitcoin Halving Event Creates Speculation of Major Price Surge – Experts Predict Record-Breaking Rally

    Bitcoin, the popular digital currency, is set to undergo a significant event known as the halving. This event, which occurs approximately every four years, will cut the reward for mining new bitcoins in half. Many experts believe that this event may lead to a substantial increase in the value of Bitcoin, sparking a potential rally…

Leave a Comment

Marriott’s European Expansion: 100 New Hotels, 12,000 Rooms by 2026 Snap Analyst Ratings: 12 Experts’ Viewpoints, Price Targets, and Performance Evaluations Dubai Floods and the Postponement of Token2049 Conference What Happens If You File Taxes After April 15? Iran-Israel Conflict Escalates, Threatens to Surge Oil Prices Above $100
Marriott’s European Expansion: 100 New Hotels, 12,000 Rooms by 2026 Snap Analyst Ratings: 12 Experts’ Viewpoints, Price Targets, and Performance Evaluations Dubai Floods and the Postponement of Token2049 Conference What Happens If You File Taxes After April 15? Iran-Israel Conflict Escalates, Threatens to Surge Oil Prices Above $100
Marriott’s European Expansion: 100 New Hotels, 12,000 Rooms by 2026 Snap Analyst Ratings: 12 Experts’ Viewpoints, Price Targets, and Performance Evaluations Dubai Floods and the Postponement of Token2049 Conference What Happens If You File Taxes After April 15? Iran-Israel Conflict Escalates, Threatens to Surge Oil Prices Above $100