Renewal rates for property catastrophe reinsurance programs underwritten by Bermuda based reinsurers have been rising at 1st June according to research from analyst firm Keefe, Bruyette & Woods Inc. In a recent trip to Bermuda the firm saw rates rising by an average of 8% to 12% and they say the outlook is for ‘ongoing improvement’.
They met with senior executives of many insurers and reinsurers in Bermuda and Keefe, Bruyette & Woods Inc. say that the management of those re/insurers were confident that rates would continue to rise through to the next major renewals in January, even without any further major catastrophes occurring.
However, Keefe, Bruyette & Woods Inc. reported that there was some pessimism over rate increases for other lines of business such as workers compensation and casualty lines. More from Business Insurance.
Everyone seems in agreement around the market that there will be a period of rate rises within the property catastrophe lines sector, but how sustained that rise will be is hard to say at this stage. Should the U.S. hurricane season pass with little impact and there be no other major disasters, we could see rates plateau again early next year, although it is likely that any rises will be maintained into next year.