HANNOVER Re subsidiary expects modest premium growth in the German market
Along with improvements in motor insurance, prices for natural catastrophe covers should at least remain stable; rate increases are anticipated under loss-impacted programs. The company expects to book additional premium income from the trending sectors of cyber and telematics, where the rising demand already seen in other markets is now also making itself felt in Germany.
"When it comes to pricing risk-oriented covers the low interest rate level continues to be a major factor, especially for longer-tail casualty business, with the result that premium adjustments are needed in most instances", Michael PICKEL, a member of the company's Executive Board, emphasized at a press conference held during the week-long meeting of reinsurers in Baden-Baden. "In view of the rising cost of all material claim items in motor third party liability insurance, we anticipate improvements in conditions for the upcoming treaty renewals as at 1 January 2018."
In light of the increasing prevalence of natural disasters, covers for extended natural perils are consistently growing in importance. In 2016, for example, severe weather events involving heavy rainfall caused insured losses almost ten times higher than in the previous year. With this in mind, ceding companies will likely review their reinsurance needs and hence rising demand for catastrophe covers can be anticipated.
The growth in demand for cyber policies should similarly have favourable implications for E+S Ruck. In cooperation with the start-up "Perseus", the company offers German SMEs a service platform for cyber security solutions and risk management.
E+S Ruck is also cooperating with Vodafone on a pilot project to offer German motor insurers convenient access to the field of telematics. The aim is to standardise the framework contractual conditions for a telematics product in order to make their application straightforward and cost-effective for insurers. "Through our involvement in this project we are seeking to expand the existing range of services offered to our customers. As the largest German motor reinsurer, we intend to partner with our clients on new products going forward, as we have in the past", Mr. PICKEL added.
All in all, E+S Ruck looks forward to further business opportunities in Germany for 2018 and considers itself well on track to maintain its market share on a high level.