Reinsurance Rates to Fall in January on Overcapacity
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Global prices for reinsurance coverage will decline 7.5 percent for policies being renewed on Jan. 1 amid high levels of capital available in the industry, the reinsurance brokerage of Marsh & McLennan Cos. said.
“The level of reinsurance capital is about 11 percent in excess of historical levels,” David Flandro, head of global business intelligence at Guy Carpenter & Co., said in an interview. “There is immense pressure on reinsurers to return capital to shareholders.”