Reinsurance News

European wildfire risk is a growing threat to insurance and reinsurance markets, with the amount of land burned jumping some 75% in just one year, but the exposure is hard to adequately price, according to specialist underwriter Chaucer.

Recent changes in the strategic direction of Florida property insurance players, as well as continuing failures and challenges for other carriers, show that “no capital structure remains immune” in this marketplace, which according to ALIRT Insurance Research continues to be in a sort of free fall.

Perhaps not an unexpected conclusion from a study on global flood risk, but the latest update to insurance and reinsurance broking group parent Marsh McLennan’s Flood Risk Index shows a dramatic increase in values-at-risk of flooding is possible with climate change.

A trio of investment bank insurance and reinsurance equity analyst teams have all forecast that US domestic catastrophe losses will be reported as above-average in the coming results season, with convective storms, hail and derecho events seen as drivers.

Rating agency Demotech, Inc. has received national recognition for its abilities as a credit rating agency from the United States Securities and Exchange Commission, becoming one of just ten rating agencies to be approved as an NRSRO.

The latest monthly data from CaseGlide shows a resurgence in newly litigated property insurance claims at Florida’s largest P&C insurers, while the percentage of litigated claims related to the assignment of benefits (AOB) rose further.

The next major set of reinsurance renewals, at January 2023, are set to be a key test for the property catastrophe reinsurance market, in defining whether or not we’re really in a true hard market, according to analysts at JMP Securities.

Insurance and reinsurance industry focused equity analysts at investment bank Goldman Sachs believe that concerns over climate change and its influence on severe weather related catastrophes are set to support reinsurance pricing in future.

There are signs in early second-quarter and first-half results disclosures from US insurers that catastrophe losses for the period may still be impactful, despite the fact data showed they might be trending lower than average for this stage of the year.

Investors should be looking at subordinated insurance debt bonds as with spreads elevated the opportunity to invest into the bonds issued by highly capitalised companies with high Solvency II ratios is an attractive opportunity, according to Plenum Investments.