Strong Demand for Reinsurance in Germany Predicted by E+S Rück

E+S Rück, a Hannover Re subsidiary, anticipates continued strong demand for high-quality reinsurance in Germany. Amid a stable market environment, competition is intensifying, particularly in industrial property lines.

The demand is driven by increasing risks, such as natural disasters, inflation, and cyber threats. Despite moderate catastrophe losses recently, insurers face complex challenges. Strengthened earnings and capital positions of primary insurers provide stability, but a disciplined underwriting policy remains crucial.

Motor insurance in Germany shows signs of stabilisation, though costs for repairs continue to drive claims inflation. Meanwhile, competition in natural catastrophe and industrial insurance remains high, affecting prices and conditions.

The report highlights the growing role of Insurance-linked securities (ILS), which provide additional capital market capacity in light of climate change and protection gaps.