[LONDON] Broker Willis Re said reinsurance rates are likely to keep falling, fuelling yet more mergers and acquisitions within the sector as firms scramble to make "major changes" to their strategies and business models.
The 1st April 2015 renewals season, when prices are negotiated, had reinforced current trends and the market continued to favour the buyer, Willis said in its latest 1st View report.
"There are no signs the tide of falling rates and widening terms and conditions will be reversed," Chairman Peter Hearn and Chief Executive John Cavanagh said in a report.
As a result, while M&A had been ongoing over the last 12 months, more was likely.
"As investment bankers rush to orchestrate the new reinsurer model of the future, previous views about possible M&A transactions are being challenged, including any thoughts that size may be an obstacle," Hearn and Cavanagh said.