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Report explores the Terrorism, cyber-risk and telematics demand for new reinsurance policies in UK

IT Market Research

Reinsurance in the UK consists of written premium, reinsurance ceded and reinsurance policies. The major factors affecting the reinsurance in the UK are the country’s economy, demographics, natural hazards, man-made hazards and their impact on the insurance industry. In the year 2017 March, the terrorism reinsurance fund Pool Re has announced plans to extend its cover to risks related to cyber-attacks on property. The non-profit flood reinsurance fund, Flood Re, is active. With the growth of cyber-risk and telematics, demand for bulk annuity reinsurance contracts and implementation of Solvency II in UK are expected to support the growth of reinsurance segment over the coming years.

It was observed that the global reinsurance market has faced losses due to rise in natural disasters in the yesteryears. The global reinsurers sector has extremely strong capital adequacy and will continue to provide support but few reinsurers are more exposed and sensitive to risk.

Even though the prices are continuing to lower across all lines of business and global property prices were low during renewals, the reinsurance sector has faced losses. The exposure to catastrophe risk is an additional pressure point on reinsurance profitability, and reinsures are overexposed who might see deterioration of their insurance over the time.