Best of Artemis, week ending December 11th 2022

Here are the ten most popular news articles, week ending December 11th 2022, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

Ten most read articles on Artemis.bm, week ending December 11th 2022:

1. Retrocession quoting scarce, with 60% – 100% rate increases demanded
   While almost the entirety of the January 1 2023 reinsurance renewals are running late so far and quotes are seen as still thin on the ground, this is especially the case in retrocession, we’re told, where demands from capital providers for rate increases are also seen as particularly significant.
2. CEA unable to fully renew reinsurance in October, foresees 1/1 challenges
   The California Earthquake Authority (CEA) was unable to fully renew all of its expiring reinsurance at October 1st resulting in a further shrinking of its risk transfer program and now the CEA is unsure whether it can renew all its expiring limit at the January 1st 2023 renewal as well.
3. Expect 50%+ rate rises for US property cat reinsurance, 25%+ elsewhere: Goldman Sachs
   Analysts at investment bank Goldman Sachs have concluded that US property catastrophe reinsurance rate increases may fall above 50% at upcoming renewals, while other areas of the world are also likely to see some of the steepest increases in two decades.
4. Upwards pressure on cat bond spread multiples to persist into 2023: Schroders Capital
   It is a compelling time for investors to build on their insurance-linked securities (ILS) allocations Schroders Capital believes, with the asset manager forecasting persistent cat bond spread widening into 2023.
5. Florida’s DeSantis calls for reinsurance bridge to a functioning property insurance market
   With another Special Session of the Florida legislative set for later this month, Governor of the state Ron DeSantis has been outspoken on two key issues, one being reinsurance capital supply, the other the insurer of last resort Florida Citizens.
6. Reinsurance costs & capacity fuel negative 2023 outlook for P&C insurers: Moody’s
   Moody’s has turned negative on the prospects of global property and casualty (P&C) insurers, with one of the main drivers being an expectation they will bear heavier catastrophe loss costs in 2023, as reinsurance becomes more expensive and less available.
7. Florida reinsurance costs could reach “breaking point”, warns AM Best
   In a report on the challenged Florida property insurance marketplace and legislative efforts to reform the sector, rating agency AM Best has warned that reinsurance costs could reach breaking point at June 2023’s renewals, surpassing the level of affordability.
8. Demotech has “extremely limited appetite” to rate more Florida carriers: Petrelli
   According to Joseph Petrelli, President and Co-Founder of rating agency Demotech, the company has taken a decision that could see it declining to rate additional or new carriers in the beleaguered Florida property insurance market.
9. TSR: 2023 Atlantic hurricane season activity forecast to be 15% below norm
   Tropical Storm Risk (TSR), one of the industry’s watched hurricane forecasting teams, has put out an extended range forecast for the 2023 Atlantic hurricane season, saying it believes it could see activity levels around 15% below the 30-year norm.
10. Lloyd’s ready to take advantage of cat risk opportunity: Tiernan
    The Lloyd’s insurance and reinsurance marketplace is ready to support its participants response to the opportunity presented by rising rates in property and catastrophe business and the market may support updated business plans that seek to capitalise on this, Chief of Markets Patrick Tiernan suggested.

This is not every article published on Artemis during the last week, just the most popular among our readers over the last seven days. There were 32 new articles published in the last week. To ensure you always stay up to date with Artemis and never miss a story subscribe to our weekly email newsletter which is delivered every Wednesday.

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