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Hannover Re subsidiary sees 'positive' premium development in Germany for 2020


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Hannover Re subsidiary sees 'positive' premium development in Germany for 2020

A number of insurance segments in Germany are on course to see "positive" premium development and conditions in 2020, according to Hannover Re subsidiary E+S Rückversicherung AG.

Stable average premiums and conditions are mostly expected in the motor insurance segment, although pricier spare parts and repairs could lead to a "modest strain on profitability." However, low interest rates should bring about "necessary" rate adjustments in non-proportional business, especially in motor third-party liability insurance, the company added.

E+S Rückversicherung anticipates "slight" price increases in the German market for natural catastrophe risks due to rising risk awareness among reinsurers following storms such as Eberhard in March and Jörn in June. The company expects growing demand and price adjustments under loss-affected programs.

"Modest" improvements were noted on the claims side, particularly in homeowners comprehensive insurance as natural catastrophe losses have been within expectations.

Efforts by insurers to restore profitability in the industrial fire insurance segment are starting to have an effect, E+S Rückversicherung stated, adding that it sees improved conditions overall in the reinsurance market though there is "continuing strain" on the claims side.

Further business opportunities are seen in the legal protection insurance segment, as there is a "significant trend" toward stronger demand for reinsurance covers. The company attributed the trend to potential losses stemming from the diesel emissions scandal engulfing automotive manufacturing company Volkswagen AG or from incorrect advice given by financial services providers.

E+S Rückversicherung also observed increased interest in telematics tariffs. It expects to maintain its market share "on a high level" and selectively expand the portfolio in certain lines.