The brokers' estimates contradict the expectations of large reinsurance companies, such as MUNICH Re, SWISS Re, HANNOVER Re and SCOR. The representatives of these companies noted, during the event, that they expect moderate price growth on certain segments during the renewal of reinsurance contracts in 2013.
According to Mike O'HALLERAN, President, AON Benfield, at the moment there is a capacity excess on the market, and the demand for reinsurance is decreasing, which means that only a natural catastrophe with great losses could significantly change the market. He also noted that the absence of such events in 2012 allowed the capital in this industry to reach a record level of USD 480 bln., which will most definitely influence next year's tariffs.
At the same time, "we estimate soft tariffs or even decreasing ones in the region, pressing the financial institutes and especially motor segments in Great Britain", Nick FRANKLAND, Director for Europe, Middle Asia and Africa, GUY Carpenter, considers.
Also, "except for a significant claim at the end of this year, we expect a soft renewal season with reinsurance tariffs between 0 and 5 percentage points up or down in both cases", Steve HEARN, CEO, WILLIS Global, mentioned.
The businesses of the top three international profile companies summed up around USD 3.27 bln. last year. Thus, the reinsurance brokers top is lead by AON Benfield, with business of USD 1.46 bln., followed by GUY Carpenter - USD 1.04 bln. and WILLIS Re - USD 763 mil. Their business reported a 6.4% increase compared to the previous year.