Best’s Journal: Growing Supply-Demand Gap Weighs on Global Reinsurers

OLDWICK, N.J.--()--Despite competitive market conditions in the global reinsurance industry, new capital continues to enter the market, creating additional pressure as the overflow of capacity is reallocated to a broader spectrum of business classes and regions. This special report, titled “Could 2013 Be the Apex of the Next Few Years?” states that reinsurers had been exhibiting strong discipline on the underwriting and investment sides of operations, but that underwriting restraint may be waning due to the competition from alternative capital. The report is the centerpiece of the latest Best’s Journal, a biweekly publication that presents A.M. Best’s original research, analysis and commentary on the global insurance industry, available exclusively as part of a subscription to the Best’s Insurance News & Analysis service. There is no additional cost to subscribers for this publication.

Other highlights in this issue of Best’s Journal include as follows:

  • Philippines’ Non-Life Sector Takes the Lead as Insurance Industry Faces Capital Challenge: This Best’s Special Report explores how insurers, particularly non-life writers, are feeling pressured as they cope with higher capital requirements.
  • New Criteria Report: Evaluating U.S. Surplus Notes: The new report, part of A.M. Best’s continual review of its rating methodology, was created to improve the transparency of A.M. Best’s approach to analyzing U.S. surplus notes.
  • U.S. Policy Shift Has Insurers Facing a Post-Quantitative Easing World: Expectations are for increased volatility as the U.S. Federal Reserve scales back its current Quantitative Easing program and markets digest the post-QE policy and re-price risk.
  • CIS Insurers Feel Impact of Russia-Ukraine Conflict: A look at the insurance markets of the Commonwealth of Independent States and how they are affected by the Russia-Ukraine conflict.
  • Recent noteworthy Best’s Credit Rating Actions and rating rationales.

Best’s Journal is delivered every two weeks as a bound, printed publication and in digital format via the Best’s Insurance News & Analysis website. Each issue is an installment in a cumulative business resource that provides insight from A.M. Best’s perspective as a credit rating agency, data provider and news publisher with a unique focus on the insurance industry. Best’s Journal provides original content available only from A.M. Best.

In addition to Best’s Journal, subscribers to Best’s Insurance News & Analysis also receive: BestWeek, a wrap-up of the prior week’s coverage of the global insurance industry; Best’s Review, A.M. Best’s award-winning monthly magazine; BestDay, a daily online insurance news digest; Best’s Special Reports and Best’s Statistical Studies; Best’s Regulatory Week; breaking news via the Best’s Insurance News & Analysis website; archived news; and a customizable “My News” feed of articles of the subscriber’s choice.

To learn more about Best’s Journal, watch a brief video at www.ambest.com/sales/aboutbestsjournal.html. More information about the Best’s Insurance News & Analysis subscription service is available at www.ambest.com/sales/bina/default.asp. To order, contact Customer Service at (908) 439-2200, ext. 5742 or at (800) 424-2378 when calling from the U.S. and Canada.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com

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Contacts

A.M. Best Company
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy@ambest.com