The Florida insurance and reinsurance marketplace is “probably better” after the legislative changes that have occurred, although how impactful they will be remains uncertain and Swiss Re’s appetite for risk in the state sounds unlikely to increase significantly, according to comments by CFO John Dacey this morning.
Speaking during a media call just now, Dacey said on the Florida insurance market that he is, “Not entirely sure what the impact will be on insurance companies, on balance it’s probably better.”
With the reinsurance renewals in Florida fast-approaching for June 1st, while broader US renewals are also coming at the mid-year, Dacey once again highlighted that Swiss Re’s risk appetite may not change very much.
On the Florida renewal, “I don’t expect us to be particularly enthusiastic in this space, we’ll evaluate the risks and pricing we can achieve.”
But he does expect that the reinsurance market hardening seen so far this year will continue.
“The 18% price increase we’ve seen on our book year to date, we expect that to continue,” Dacey explained.
While, “For some of the loss impacted layers, we expect price increases to be substantial.”
Finally, Dacey said that Swiss Re’s expectation is that the hard reinsurance market conditions will continue.
Saying, “We expect a continued firm pricing in the reinsurance market overall.”
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