Reinsurance in 2025, a stable, balanced market
 Click to downloadthe magazine |
After a difficult 2017-2020 period, with combined ratios in excess of 100% and low financial income, reinsurers are back to profit in 2021. By the end of 2023, all the industry's indicators are in the green: record profits, strong balance sheet resilience, stable investment income, a situation not witnessed in over twenty years.
Given this outstanding performance, there's no reason to think that there will be a change of course at the 2025 renewals. So, no rate hikes, but no slackness either, with vigilance on the agenda. The aim is to stabilize the reinsurance market and maintain its high profitability.
The current healthy state of the market can by no means alleviate the strong pressures being exerted on reinsurers. A number of risks, each more complex than the last, may require a reassessment of rates and coverages in 2025.
These risks include:
- extreme climatic events such as forest fires, hurricanes and floods, which are increasing in frequency and cost,
- economic uncertainties exacerbated by inflation and rising interest rates, which impact claims costs,
- geopolitical risks, trade tensions, threats to shipping lanes and the economic policies of individual countries, creating a complex environment,
- cyber risks and personal data protection, the consequences of which can weigh heavily on reinsurers' accounts.
