Reinsurance News

Insurance and reinsurance companies based in Bermuda could end up taking as much as one-quarter of the industry losses from hurricane Ian’s impacts in Florida.

The two issues at the top of the agenda for lawmakers at next weeks Special Session of the legislature in Florida are reducing litigation and increasing the availability of reinsurance.

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.

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.

Arbol, a technology-led underwriter of parametric risk transfer, climate and weather insurance or reinsurance business, has paid out $10 million for a parametric reinsurance contract that was triggered by hurricane Ian for its client Centauri Insurance.

The Florida property insurance market could face an even more challenging year ahead in 2023, as reinsurance capital loses its appetite for the state and private insurance capital shows now interest in moving in currently.

It appears that investors in the collateralized reinsurance sidecar vehicle of Oxbridge Re Ltd., the Cayman Islands based reinsurance firm, may support the insurers’ losses from hurricane Ian, as their share of income from the vehicle was recorded as zero for the third-quarter.

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.

London headquartered insurance and reinsurance marketplace Lloyd’s has hired Adrian Gfeller, the former Managing Director of ILS fund backed syndicate Arcus 1856, as a Senior Manager in its Portfolio Analytics function.

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.