HANNOVER Re: Reinsurance demand in Germany to increase

23 October 2012 — Mihaela CIRCU
HANNOVER Re: Reinsurance demand in Germany to increase
hannover_reOverall demand for reinsurance in Germany is likely to increase at the key 1 January renewals, according to reinsurer HANNOVER Re. It said it expected demand for catastrophe cover to increase overall due to "the more exacting equity requirements" imposed on insurers by Solvency II, as well as by changes to catastrophe models. Overall, HANNOVER Re expectes stable-to-rising prices in the German market for the upcoming treaty renewals. However, the outlook varied across different lines of business.

"Even though the situation in motor insurance has improved, we still see some ground to be made up in a number of lines," explained Michael PICKEL, Member of the company's Executive Board, at the reinsurance meetings in Baden-Baden.

"Along with windstorm business, the fire line is also a cause for concern in this regard," he added.

The reinsurer said it expected sustained improvement in motor reinsurance prices in its domestic market and argued that the market needs to respond to the high claims frequency emanating from the industrial fire and property insurance, and said that homeowners' insurance is "running at a chronic deficit".

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