Viewpoint: After risk-sharing reset, vigilance is needed to promote stability in re/insurance
Continued underwriting discipline is needed to stabilise the reinsurance cycle and avoid unsustainable price swings that can interfere with the industry’s ability to keep pace with the evolving nature of 21st-century risk
There has been a significant reset in the re/insurance sector in how costs of catastrophic risks are shared. This shift, together with improved pricing adequacy, helps the industry send clearer signals to clients and society about the rising cost of evolving risks and how to mitigate them. With volatility persisting, keeping pricing adequacy in focus is crucial
