E+S Rückversicherung AG, a subsidiary of Hannover Re, anticipates further price increases and improved terms and conditions in property and casualty reinsurance renewals for January 2025. The company expects these changes due to the significant losses caused by natural catastrophes in Germany.
"For a number of years now, the insurance industry in Germany has been faced with numerous natural catastrophes causing considerable losses and damage," said an E+S Rück spokesperson. "Adequate prices, terms and conditions are absolutely essential for this."
Motor insurance remains a concern as it is likely to stay in deficit despite tariff adjustments by primary insurers. These adjustments have not achieved the desired effect due to high claims inflation. Michael Pickel noted that "claims frequency is not diminishing, while the increase in spare parts and workshop costs is well above inflation." He suggested that primary insurers would need to implement significant price increases to restore profitability.
Natural catastrophe covers continue to see sustained claims trends from prior years. E+S Rück anticipates growing demand for these covers in 2025 along with increased capacities purchased by insurers. Prices and terms are expected to improve on a risk-adjusted basis.
The market for cyber covers had leveled off in 2023 due to softening prices but faces pressure from rising losses caused by cyber-attacks. Thorsten Steinmann, set to become CEO of E+S Rück on January 1, 2025, emphasized continuity as a key factor for future success: "Particularly given the current state of the market, we aim to be a reliable partner for our clients."
Hannover Re is recognized globally as one of the leading reinsurers with outstanding financial strength ratings from Standard & Poor's and A.M. Best.