The world's largest reinsurance broker, Aon Re, has predicted that rates in some classes of reinsurance business will fall at next year's 1 January renewals.
Releasing the results of a survey of its clients, Aon Re said that buyers and sellers of reinsurance are both expecting rates in short tail business, such as property and personal lines, to fall. But rates for liability and long tail business are expected to harden further as a lack of capacity strengthens the market.
Deputy chairman of Aon Re UK, Charles Cantlay said long tail and complex risks, such as directors' and officers', terrorism, cyber and biochemical risks are becoming difficult to place, while there is an excess of capacity for property catastrophe, aviation and marine risks.
