Reinsurance News

The General Insurance Association of Japan (GIAJ) has reported that already domestic insurers in the country have paid out just under US $2.5 billion for claims from typhoon Faxai, while for more recent typhoon Hagibis the claims are still mounting up.

Bush fires continue to burn across Australia and the mainstream media is now reporting over 500 homes destroyed in the recent outbreaks, while further warnings of catastrophic fire weather have been made as temperatures soar.

The U.S. Federal Emergency Management Agency (FEMA) is expecting to secure orders and authorisations for a January 2020 renewal of the National Flood Insurance Program’s (NFIP) traditional reinsurance program in the coming days.

MS&AD Holdings, the Japanese parent to domestic insurance carriers Mitsui Sumitomo and Aioi Nissay Dowa Insurance, as well as its international operation MS Amlin, has revealed today that it expects its ultimate loss from typhoons Hagibis and Faxai will be approximately US $3.36 billion, before reinsurance recoveries.

Loss creep from hurricane Irma has remained evident for the major insurers operating in Florida in the third-quarter of the year, but the impact to reinsurance markets is slowing and the Florida Hurricane Catastrophe Fund (FHCF) has been soaking up much of the new claims inflation, at least from larger players.

A severe hail storm struck the Brisbane and Sunshine Coast region of South Queensland, Australia yesterday, resulting in widespread damage, with thousands of insurance claims already filed.

The ongoing creep of insurance and reinsurance market losses associated with hurricanes that have hit Florida continues in the case of hurricane Michael from 2018, with the total rising another over 3% to reach almost $7.44 billion.

Everest Re’s new and incoming CEO Juan C. Andrade sees a range of opportunities presented by current market conditions, among which are increased use of third-party reinsurance capital and also underwriting in the retrocession market.

In a market environment where reinsurance capital increasingly wants to be paid a higher return for the risks it takes on, there is a growing chance that primary insurance carriers look to the capital markets, insurance-linked securities (ILS) and alternatives, according to A.M. Best.

Indicative pricing for Japanese wind exposed industry-loss warranty (ILW) backed retrocessional reinsurance protection have risen significantly in response to the now consecutive years of heavy Japan typhoon losses, as well as nervousness over where current loss estimates will be finalised.