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Reinsurance rates to climb on double whammy of climate change, market conditions

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Janice Lim

Janice Lim

Published Mon, Aug 7, 2023 · 05:00 AM
    • “The nature of insurance and reinsurance is to take risk. We’re not here to avoid risk. We’re here to take risk. And it’s this part of the world that is exposed to risk,” says Achim Kassow, member of the board of management of Munich Re.
    • “The nature of insurance and reinsurance is to take risk. We’re not here to avoid risk. We’re here to take risk. And it’s this part of the world that is exposed to risk,” says Achim Kassow, member of the board of management of Munich Re. PHOTO: MUNICH RE

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    THE cost of insuring natural catastrophes will rise as the frequency and severity of natural disaster increase in the next few years, said Achim Kassow, a management board member at reinsurer Munich Re.

    Exacerbating the price pressure are market volatility, rising inflation and interest rate hikes that are pushing reinsurance rates higher, said Kassow, who oversees Asia-Pacific for the company.

    Rising inflation would translate into projection of higher losses, which would in turn lead to higher insurance premiums. 

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