Munich Re (BIT: MUV2 ) said reinsurance rates are set to rise across the sector due to inflation, rising interest rates and shrinking capital to support the subscription activity.
In a statement released on Sunday, the German group said reinsurance capacity, or the industry’s financial ability to take risks, is in decline while demand for contracts is growing, causing rates to trend higher. .
“Reinsurance capacity decreases as demand increases, so a further tightening of the market is observed,” he said.
Munich Re added that it is firmly on track to meet its strategic goals by 2025.
