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MS Re expects property pricing to keep softening toward technical floor

The reinsurer’s underwriting chief said property rates have already fallen sharply over the past year, and future declines should slow as pricing nears a technical adequacy level.

Reported · Written up by our desk · Reinsurance

Reinsurance News reports that Jörg Bruniecki, Group Chief Underwriting Officer at MS Re, said the reinsurance market heading into the January 1 renewals is close to a sustainable floor for property pricing after a steep rate decline over the prior year.

Bruniecki said property rates are nearing a “technical adequate” level, meaning excess margin has largely been removed from the business, and while abundant capital remains in the market, reduced activity should support continued, but more moderated, softening going forward.

He added that underwriters will need to stay disciplined as pricing approaches its technical limit, because MS Re cannot support business below technically adequate levels.

For casualty, Bruniecki said rate adequacy is still an open question due to the class’s varied and volatile risks, and he argued attachment points across the risk chain have helped keep retentions intact since the 2022 market reset, including for secondary perils like severe convective storms and wildfires.

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