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Florida market challenges mean investors aren’t lining up: TigerRisk execs

The cyclical nature of the Florida property insurance market is just one of the challenges facing those operating there, with issues around claims litigation, assignment of benefits (AOB) and its exposure to hurricanes and severe weather all making for a marketplace that is difficult to navigate. But the challenges faced in read the full article →

Hudson Structured to take majority control of Weston

Hudson Structured Capital Management Ltd., the insurance-linked securities (ILS), reinsurance- and transportation- focused investment manager, is expected to take majority control of windstorm focused primary insurance group Weston Insurance Holdings Corporation, after a recent capital restructuring and increased investment in the carrier. Hudson Structured, which undertakes insurance and reinsurance investment business read the full article →

Florida rates may still not cover true cost of risk: Nottingham, Hiscox Re & ILS

When thinking about the recent firming or even hardening of the Florida reinsurance market at the June renewals, it's important to understand that even the rate increases achieved may not always be sufficient to cover the true cost of risk in the state, according to Ross Nottingham of Hiscox Re read the full article →

Weston & its acquiree Anchor have ratings withdrawn by Demotech

Windstorm focused primary insurance carrier Weston Insurance Company has had its rating withdrawn by Demotech, which market sources suggest may be partly down to challenges it faced in filling out its reinsurance tower at the recent renewals. Weston Insurance Company is an admitted carrier, operating in Florida, Texas, Alabama, Mississippi and read the full article →

Covid-19 “live cat” puts reinsurance into “sustainable hardening” – JMP Securities

The Covid-19 pandemic is like a "live cat" for the reinsurance industry, one that will keep on driving losses, and this combined with the challenges caused by recent consecutive catastrophe loss years appears to have driven the market into a phase of "sustainable hardening," analysts at JMP Securities have said. Having read the full article →

FHCF won’t renew reinsurance due to Florida market conditions

The Florida Hurricane Catastrophe Fund (FHCF) has decided not to renew its reinsurance program in 2020, citing reduced reinsurance market capital levels and in response to the firming marketplace. It's the latest clear sign of the hardening of Florida reinsurance rates, which as we explained last week sees rates increasing broadly read the full article →

Florida reinsurance may rise 20% in June as loss creep weighs: A.M. Best

Reinsurance pricing could rise by as much as 20% at the Florida renewals in June 2020, with the continued pressure from loss creep on both insurers and reinsurers the main driver, according to A.M. Best. Loss creep from 2017's hurricane Irma struck some players again in the fourth-quarter of 2019, with read the full article →

Florida market strains may drive reinsurance & private debt demand

The Florida insurance market is in a state of flux, as strains from recent years have begun to drive ratings assessments and a situation where capitalisation is key, leading to a number of carrier disposals and a likelihood that both reinsurance capital and private debt will become more in-demand. Rating specialist read the full article →

Florida Citizens aims to continue its depopulation

Florida’s Citizens Property Insurance Corporation has shrunk its exposure significantly in recent years, thanks to a gradual privatisation of its risk through its policy depopulation program. Now, Florida Citizens wants to decrease its exposure even further, with a resumption of depopulation a possible route to gaining further private market participation in read the full article →

FHCF renews reinsurance at flat pricing, using more third-party capital

The Florida Hurricane Catastrophe Fund (FHCF) has renewed its reinsurance program at a slightly smaller size of $920 million, but with flat pricing and insurance-linked securities (ILS) players taking a slightly larger share in 2019. Leading the ILS market participation in the FHCF's 2019 reinsurance renewal was Fermat Capital Management, which read the full article →