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Guy Carpenter: Reinsurers Like LTD

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Good claims experience has helped bring down life and health reinsurance prices.

A consultant at Guy Carpenter & Company L.L.C., New York, gives that assessment in a mid-year review of the life and health reinsurance market.

Medical stop-loss carriers have faced turbulence in recent years, but renewal rates now are approaching the break-even point, according to David Rains, a Guy Carpenter managing director.

Writers of long-term disability insurance are seeking growth, and that is translating into higher retention levels, Rains says.

Because LTD programs are performing well, reinsurers also have a “healthy appetite” for LTD risk, Rains says.

Meanwhile, at term life operations, the trend away from coinsurance in term life lines has slowed, and insurers are becoming comfortable holding larger amounts of mortality risk, Rains says.