HANNOVER Re subsidiary anticipates premium growth in the German market

27 October 2016 — Vlad BOLDIJAR
E+S Ruck - which within the HANNOVER Re Group bears responsibility of the German business - expects to see premium growth in its home market for the upcoming treaty renewals as at 1 January 2017: "Along with motor insurance, growth will likely be driven in particular by homeowners' comprehensive insurance, where premium increases are necessary on account of the unsatisfactory business development", as the reinsurer announced on its web site.

"In view of the ongoing low interest rate environment the insurance industry will continue to be put to the test, which is why technical pricing is equally important for insurers and reinsurers alike", Michael PICKEL, a member of the company's Executive Board, emphasised at a press conference held during the Reinsurance Meeting in Baden-Baden.

The reinsurers pointed out that, the current low level of interest rates offers little room for concessions over insurance conditions.

At the same time, "in the motor line there is a need for premium adjustments given that results for the current year will at most break even owing to the higher average claims amount". E+S Ruck therefore anticipates improvements in conditions for the treaty renewals as at 1 January 2017.

In natural perils business regional customer portfolios were significantly hit, above all by heavy rainfalls. "This will probably prompt some customers to adjust their reinsurance requirements, thereby further boosting demand for capacity", Michael PICKEL explained.

Growing demand for cyber policies should also have favourable implications for E+S Ruck. "A sharp surge in interest is particularly likely in the commercial sector on account of recent developments. The company sees further potential for reinsurance business as a result of the influence of FinTechs on the insurance market; here, too, E+S Ruck is a partner of choice thanks to its good financial strength rating and consulting expertise".

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