New Zealand’s central bank forecasts the stiffening of reinsurance terms

New Zealand’s central bank has mentioned in its last report that it expects an increase of reinsurance rates for the July renewals. A significant proportion of business expires at this date. This contingent tariff rise follows last year’s substantial increases when the price of household insurance soared by 35%. The Christchurch earthquake, which occurred 18 months ago, seriously affected reinsurers who have tried to exert pressure on prices.