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Hannover Re subsidiary anticipates stable conditions in the German market

20 October 2014 Michael Pickel, Hannover Re

E+S Rück – which bears responsibility within the Hannover Re Group for German business – expects to see broadly stable conditions and prices in the treaty renewals as at 1 January 2015.

"Heavy loss expenditures, especially in connection with June storm Ela as well as belatedly reported claims from hailstorm Andreas in the previous year, should be a factor in the upcoming renewals and serve to at least keep rates stable for loss-impacted covers", Mr. Michael Pickel, a member of the company's Executive Board, explained at a press conference during the week-long meeting of reinsurers in Baden-Baden.

In light of the trend towards an accumulation of extreme weather events in Germany and the associated higher losses, many primary insurers are reviewing their risk protection with an eye to avoiding potential volatility in their results. In this context E+S Rück supports its clients with catastrophe analysis tailored to their needs and is thereby able to offer bespoke reinsurance solutions. "Bearing in mind the losses that have occurred in the past and the likelihood of increased localised weather events in the future, we expect to see growing demand for coverage concepts", Mr. Pickel emphasised.

When it comes to renewing long-tail lines such as general liability and motor liability, allowance will have to be made not only for the further decline in interest rates but also for the claims experience from prior years. This will likely prompt a corresponding need for adjustments, which should at least result in rates remaining stable.

The situation in industrial fire insurance continues to be under strain owing to the considerable number of basic losses. Against this backdrop E+S Rück expects to see improvements in conditions.

All in all, E+S Rück anticipates further market opportunities in 2015 and considers itself well on track to maintaining its market share on a high level going forward.

 

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