Berenberg’s recent report points out that the increasing costs associated with natural catastrophes in the first half of 2024 have shifted financial responsibilities predominantly to primary insurers rather than reinsurers. Major insurers such as Allianz, AXA, and Zurich have incurred significant losses due to these events, compounded by additional costs from unexpected incidents like the New Caledonia riots. Despite these challenges, analysts suggest the overall losses remain manageable within insurer budgets, with estimates for certain catastrophic events decreasing since earlier projections. The report emphasizes that the current hard reinsurance market is maintaining upward pressure on insurance pricing, leading to reduced competition in the sector.
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