Reinsurance News

The second test case in the High Court of Australia regarding the interpretation of policy wordings in business interruption policies after the COVID-19 pandemic, has been resolved in favour of insurers after appeals were denied, a move that has positive implications for the release of some trapped ILS capital, we’re told.

Based on the information available at this time, an analysis of Florida insurance carriers rated by Demotech suggests that they may all be able to contain losses from hurricane Ian within their reinsurance towers, according to President and Co-Founder Joseph Petrelli.

During a panel discussion at the ILS Bermuda Convergence 2022 event yesterday, Michael Millette told the audience that while the quantum of loss matters after hurricane Ian, with such a range of estimates, the risk is that cedents will all seek to trap capital as if the industry impact is going to be $70 billion […]

Hurricane Ian will prove to be a “trial by fire” for the legislative reforms enacted in Florida to improve the situation in its insurance marketplace, and today there were questions about whether those reforms are enough among speakers at the ILS Bermuda Convergence 2022 event.

The Progressive Corporation has reported an expectation of recovering around $1.2 billion from its property reinsurance arrangements, to help it pay for an estimated $1.4 billion of gross property claims from hurricane Ian.

Florida headquartered, nationally expansive U.S. property casualty insurer, Heritage Insurance Holdings, Inc., has said that it expects its hurricane Ian losses will fall within the second-layer of its reinsurance tower, which covers it up to $960 million of losses.

Coalition, a leading technology-focused cyber insurance company, has announced the launch of a Class 3B Bermuda based reinsurance company called Ferian Re Ltd. which is backed by third-party capital and will act as a kind of sidecar-like source of capacity to support its cyber insurance programs.

The National Flood Insurance Program’s (NFIP) reinsurance tower is coming into view of the rising hurricane Ian claims burden, as NFIP claims filed have now surpassed 35,000, according to the US Federal Emergency Management Agency (FEMA).

According to the global insurance and reinsurance equities analyst team at Jefferies, the share price reaction to hurricane Ian has been more benign than expected, leading them to suspect investors are looking to the “substantial renewal pricing upside” that is now anticipated.

United Insurance Holdings Corp. (UPC Insurance) is the second of the Florida and coastal carrier specialists to announce a significant $1 billion gross loss estimate for hurricane Ian, with the majority of that to be ceded to its reinsurance partners.