More insurance and reinsurance rate increases could be on the way because of falling profitability and evidence of under-pricing, according to AXA XL’s CEO Hendrick. He said everything pointed to a persistent upward pressure on rates, and that recent rate movements have been a sign of the industry realising rates have been too low. In addition, he said poor results and rising losses, from factors including man-made events, are making the situation worse. Brokers and clients, he added, are now accepting that the price of risk has gone up and that more needs to be paid.
More insurance and reinsurance rate increases could be on the way because of falling profitability and evidence of under-pricing, according to AXA XL’s CEO Greg Hendrick. He said everything pointed to a persistent upward pressure on rates, and that recent rate movements have been a sign of the industry realising rates have been too low. In addition, he said poor results and rising losses, from factors including man-made events, are making the situation worse. Brokers and clients, he added, are now accepting that the price of risk has gone up and that more needs to be paid.