He said that the ongoing soft market conditions are related to drivers such as earnings recovering, stable capital, and abundant capacity. The current market pricing is now generally "dictated by account loss results."
A "flat but functional" pricing environment for property catastrophe is likely to become the "new norm", considers the Willis Re's executive.
However, he added that, for what is considered to be a soft market, Willis Re continues to view conditions as very functional for reinsurers and brokers.
"Regulation has definitely had an influence in terms of providing oversight and discipline of the market," he said, "and we do say that for a soft market, it's functional where pricing is being corrected on accounts, on the history of that account, and on the loss performance of that account."
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