Best of Artemis, week ending December 18th 2022

Here are the ten most popular news articles, week ending December 18th 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 18th 2022:

1. Swiss Re estimates reinsurance capital has shrunk 30% in 2022
   The Swiss Re Institute has estimated that traditional reinsurance capital has declined by 30% over the course of the first nine months of 2022, a far steeper decline than had previously been forecast.
2. Florida property insurance bill passes House. It’s no panacea though
   The package of reforms to Florida’s property insurance market passed its final real hurdle in the Legislature, having been approved in the House of Representatives. It’s a meaningful step in the right direction, but no panacea for all of Florida’s future insurance challenges.
3. CEA gets $305m of quake reinsurance with Ursa Re II 2022-2 cat bond
   Having struggled in placing reinsurance in October and feeling that the January renewals could be a further challenge, the California Earthquake Authority (CEA) has successfully sponsored the largest catastrophe bond issue since hurricane Ian struck, securing a new $305 million Ursa Re II Ltd. (Series 2022-2) deal.
4. Property cat rates must rise 50% to offset rising claims costs, restore profitability: EY
   Against the backdrop of increasing impacts from climate change, consultancy EY has suggested that property catastrophe reinsurance rates need to rise by 50% at the 2023 renewals, just to offset rising costs of claims and to restore profitability for the re/insurance sector.
5. Passing time strengthens reinsurance renewal resolve: KBW
   The January 2023 treaty reinsurance renewals are running far behind their usual schedule, with only around 5% of the treaty market reportedly having cleared so far, and rate increase indications seemingly rising, analysts at KBW found after a trip to meet with re/insurance executives in Bermuda.
6. Descartes launches full-stack parametric insurer, Descartes Insurance
   Descartes Underwriting, an insurance technology (insurtech) focused managing general agency (MGA) that specialises in parametric and data-driven risk transfer products, has announced the launch of a full-stack insurer, named Descartes Insurance.
7. Retro renewals: No shortage of orders, but still short on capacity
   The retrocessional reinsurance renewals remain in an almost stand-off situation, with many reinsurers unclear how much retro protection they can go into 2023 with, as quotes are still in short-supply. But, at the same time, it seems there are plenty of potential buyers out there.
8. New reinsurance capital could flow before Florida’s June renewals: Aon’s Dittman
   Some new reinsurance capital could begin to flow in advance of the Florida focused June renewal season at June 1st 2023, according to Chris Dittman, Head of Florida Strategy at Aon’s Reinsurance Solutions.
9. 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.
10. Florida carrier surplus declines 23.5%, combined ratio hits 147.5% at end of Q3
    Florida’s personal property carriers are having another very difficult year, with policyholders surplus being down by 23.5% across the group by the end of the third-quarter of 2022, new data from reinsurance broker Gallagher Re shows.

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 37 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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