Brit sees 'capacity crunch' for 2009

Brit Insurance CEO seeing 'capacity crunch' for 2009: "Brit Insurance's chief executive Dane Douetil is expecting a 'capacity crunch' in 2009, leading prices higher.

Talking a press conference Douetil said: 'We think there will be a capacity crunch and that will push prices upwards.'

He added: 'There are estimates that over $100bn has been lost on the investment side, as well as $20bn from the hurricanes. This money is not re-entering into the reinsurance industry. And people won't be able to refund their balance sheet with great investment performance. And with no new entries, no temporary capital, all that will lead us to believe that there will be a capital shortage.'

'And if there are more hurricanes in 2009, that will only take prices higher.'"

Source: Reinsurance