HANOVER (dpa-AFX) - E+S Rückversicherung AG, the Hannover Re subsidiary responsible for the Group's German business, said it expects rising reinsurance prices after catastrophic weather events in the Germany. The disastrous flooding caused by the low-pressure system 'Bernd' led to insured market losses in Germany alone well in excess of 8 billion euros.
'After the terrible severe weather events of June and July, 2021 will go down as one of the costliest years ever for the German market,' said Dr. Michael Pickel, Chief Executive Officer of E+S Rück.
E+S said it expects higher prices and improved conditions in property and casualty reinsurance on the German market following the devastating flood damage in the summer.
E+S Rück anticipates appreciable adjustments to prices and conditions in the property line in Germany, especially for catastrophe covers. Moreover, demand for high-quality reinsurance protection continues to grow.
According to the company, claims frequencies in motor insurance will come close to reaching the pre-pandemic level again in 2022. At the same time, the sharp rise in the cost of spare parts and repairs has continued and even accelerated in recent months.
E+S Rück considers higher prices in the reinsurance market for commercial and industrial risks to be necessary, especially under loss-impacted programmes. On the conditions side, too, adjustments are needed for pandemic-related and cyber risks if they have not already been implemented.
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