Recent quakes such as the destructive tremor in Japan and the insurance industry's preparations for Europe's Solvency II regulation are pushing up demand for reinsurance, prompting Aon and Marsh to consider increasing their rates, according to Stifel Nicolaus. "This confluence of events pushes up the amount of severity that these regulators will use. They'll insist that insurers have more reinsurance," said Meyer Shields, an analyst with the firm.

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