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More focus expected on profitability in the short term in P&C reinsurance sector - Hanover Re

Over the medium to long term, substantial growth in the property and casualty reinsurance in the APAC region continues to be anticipated, says Hannover Re in its outlook on the sector.

In its 2023 annual report, the global reinsurer says that consolidation is expected in the P&C reinsurance market in the short term, coupled with a greater focus on profitability,

As far as the pandemic-related losses in accident and health insurance are concerned, Hannover Re says that it does not expect to incur any further strains in 2024.

The reinsurer is seeing a clear tendency towards improved profitability in the market due to corresponding pressure exerted by capital providers, regulators and market players.

Commenting on different geographical markets, Hannover Re said, “It is our expectation that the Chinese insurance industry, in particular, will improve considerably over the coming three to five years. The major reinsurers have recalibrated their risk models and hence their risk assessment and exposures for the coverage of typhoon risks in Japan in recent years. The increase in prices for industrial and fire business already recorded in the year just ended looks set to continue.

“It is our expectation that rates and conditions for business in Australia and New Zealand will continue to stabilize on a high level – on both the insurance and reinsurance markets – following the severe natural catastrophe losses of recent years.”


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