MONTE CARLO (dpa-AFX) - Hannover Re, the world's third-largest reinsurer, expects prices for reinsurance cover to continue rising due to increasing natural catastrophes and high inflation. "We have achieved significantly more adequate prices and conditions in the renewal rounds of the current year. However, these improvements are not sufficient in view of the still challenging risk situation," CEO Jean-Jacques Henchoz said Monday at the reinsurers' meeting in Monte Carlo. Despite rising prices, the board expects demand for reinsurance cover against natural catastrophe risks to continue to grow in 2024 and beyond.
The DAX-listed group pointed to natural catastrophes such as Hurricane "Ian" last year, as well as the devastating wildfires in Hawaii and flooding in Slovenia and Austria. "Accelerating climate change is likely to contribute to an increase in extreme weather events such as tropical cyclones, heat waves and winter frosts, extreme rainfall, wildfires and severe convective storms in many regions of the world." High inflation is also driving up loss costs, he added.
At the "Rendez-Vous de Septembre" in the Principality of Monaco, reinsurers such as Munich Re and Hannover Re traditionally sound out the conditions for renewing treaties in property and casualty business at the next turn of the year with primary insurers such as Allianz and Axa./stw/stk