TPRE - Reinsurers' Glory Days Are Over As Dependence On ILS Increases: A.M. Best
Global reinsurance market conditions are said to be improving by rating agency A.M. Best, which maintains a stable outlook on the sector, but sees traditional reinsurance capital becoming increasingly dependent on third-party sources of capacity and ILS.
Insurance-linked securities ((ILS)) and third-party reinsurance capital are becoming increasingly important to traditional reinsurers' business models; that's the upshot of A.M. Best's analysis.
The rating agency is maintaining a market segment outlook of stable on the global reinsurance industry for 2020, thanks to the pricing environment stabilising somewhat.
However, A.M. Best warns that pricing is stabilising "at levels