The Insurance Market Is Healing | EUROtoday

Insuring the danger of catastrophic hurricanes and earthquakes danger in all probability isn’t getting cheaper. But a minimum of there could be extra protection coming to alleviate the troubled insurance coverage market.

Going into final 12 months, rising rates of interest helped result in a slower inflow of capital into reinsurance, which is the backstop that insurers use to guard towards so-called tail dangers akin to hurricanes and earthquakes. That lastly gave the higher hand to reinsurers in pricing negotiations, after a number of years of seeing their pricing battle to maintain up with the rising losses on world catastrophes. That in flip led major insurers that promote protection to people and companies to bear extra of their very own danger.