EQS-News: E+S Rück expects further improvements in prices as well as terms and conditions in Germany after losses caused by severe weather events
Source: EQS
E+S Rück expects further improvements in prices as well as terms and conditions in
Baden-Baden, 21 October 2024: E+S Rückversicherung AG, the "For a number of years now, the insurance industry in E+S Rück expects that motor insurance, the largest line of property and casualty insurance by volume, will likely remain in deficit. The tariff adjustments made by primary insurers have so far failed to achieve the desired effect owing to persistently high claims inflation. Sharp increases in the costs of repairs and spare parts have led to a further rise overall in claims expenditure for physical damage. Higher costs can be observed in connection with major bodily injury claims due to increased care expenses. "Claims frequency is not diminishing, while the increase in spare parts and workshop costs is well above inflation. This is taking a heavy toll on the results posted by motor insurers," said From the perspective of E+S Rück, the need for adjustments to prices and terms and conditions is more marked for non-proportional covers with rather low retentions as well as for proportional reinsurance treaties. As for natural catastrophe covers, the claims trend seen in prior years has been sustained. Following the hail events of 2023, the claims picture for insurers in the current financial year has been especially notable for multiple flood events. All in all, 2024 is again expected to see considerable losses from natural disasters. For the coming year, E+S Rück anticipates growing demand overall for natural catastrophe covers, combined with a sharp increase in purchased capacities, while at the same time prices and terms and conditions will show further risk-adjusted improvements. After an increased frequency of large fire losses in 2023, industrial and commercial business is reporting continued poor market numbers in property insurance for 2024 as well. Adjustments are still needed even though inflation has normalised. The focus is increasingly turning to new exposures such as SRCC risks. Emerging risks, including for example the insurability of forever chemicals (PFAS), are growing in significance in the liability line. The market for cyber covers had already levelled off in 2023 due to softening prices and increased competition. At the same time, there is pressure to make adjustments as losses caused by cyber-attacks are rising. The aggregation risk is also taking on added relevance. Reflecting the advance of digitalisation, cyber insurance is a growing line of business that requires the appropriate expertise. "Particularly given the current state of the market, we aim to be a reliable partner for our clients and continuity will remain a key factor in our future success," said Please note the disclaimer: https://www.hannover-re.com/535917 Contact
Investor Relations:
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Language: | English |
Company: | Hannover Rück SE |
Karl-Wiechert-Allee 50 | |
30625 Hannover | |
Phone: | +49-(0)511-5604-1500 |
Fax: | +49-(0)511-5604-1648 |
Internet: | www.hannover-re.com |
ISIN: | DE0008402215 |
WKN: | 840 221 |
Indices: | DAX |
Listed: | Regulated Market in |
EQS News ID: | 2011643 |
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2011643 21.10.2024 CET/CEST