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ALLIANZ TRADE: Eurozone inflation: How bad can it get?

The Eurozone is facing the highest price pressures since the 1970s, a recent study released by Allianz Trade shows. Headline inflation reached 7.5% y/y in April (up from 7.4% y/y in March), with almost 60% explained by energy inflation. Europe has been hit particularly hard, given its stronger reliance on energy imports and the recent depreciation of the euro to a five-year low against the US dollar. How bad can it get?

Inflation - the number 1 global enemy

While the war in Ukraine will have minor direct consequences on the insurance industry, the indirect consequences, such as the capital markets volatility or the poorer growth prospects, will weigh more heavily, chief economists of Swiss Re, Munich RE and Allianz said in a discussion hosted by GDV.

AM Best report: Europe's captive sector thrives amidst hardening market

Amid tougher renewal discussions in Europe, there has been an uptick in the use of existing captives, as owners increasingly seek optimal risk transfer solutions, AM Best's new Market Segment Report found out.

The report looks at the background to this development. It notes that price increases in the (re)insurance market began to appear as early as 2018 in some segments. The market has continued to harden since, with commercial insurers and reinsurers commonly reporting rate-on-rate increases, and a tightening of terms and conditions.

Munich Re anticipates higher reinsurance rates on European markets

Global reinsurer Munich Re anticipates to see continued market hardening in Europe to accompany January 2022 renewals, while the major losses and inflation indicate more pricing discipline. "Due to the character of risks like natural catastrophes, COVID-19, and rising cyber-attacks, the role of reinsurance is increasingly transcending risk transfer", as the German reinsurer mentioned in a statement.

New opportunities for Russian insurers in ESG

ESG and sustainability have gained huge attention within Russian media and politics in recent months, argues Gepa Jansen, Operational Leader Team Russia & CIS at Swiss Re in the following article. Read her opinion oin the opportunities that ESG brings to the Russian insurance market.