Florida insurance and reinsurance market news

Insurance companies have lost control of their claims frequency and the use of technology enabled claims instigation practices to drive more claims through litigation has become a significant social inflationary threat to the industry, with ramifications for the reinsurance and insurance-linked securities (ILS) market, speakers explained in our latest Artemis Live video interview.

The approval of two carriers to takeout policies from Florida’s property insurer of last resort, Citizens Property Insurance Corporation, right in the middle of the hurricane season, shows there are risks that are viewed as attractive within the Citizens portfolio, while these semi-seasoned risks can even be an easier win than finding and writing new […]

The fourth session of the day at our Artemis ILS NYC 2023 conference, held in New York on February 10th, saw industry leaders discussing the expansion of the insurance-linked securities (ILS) asset class and what new or emerging opportunities are now available to investors.

News emerged yesterday confirming rumours we’d heard that Nationwide is the latest major US insurance carrier to take actions in the face of challenging market conditions and escalating loss severity or frequency trends. But we’ve now learned more, including that the carrier will re-underwrite some of its personal lines book to further improve the portfolio […]

Nationwide Mutual Insurance is the latest major US carrier to announce that it is pulling-back, due to catastrophic weather losses and inflation among other reasons, planning to cease writing certain new business as it looks to get a handle on its exposure and claims frequency.

On the heels of the news that State Farm is exiting writing property insurance in California, it’s now been reported that AIG and Farmers are also shying away from the most catastrophe exposed areas.

Tower Hill Insurance Exchange has renewed its Florida reinsurance tower at close to $2 billion in size, securing $120 million more limit than its expiring program.

The Florida reinsurance renewals on June 1st are all but done, according to sources and reports, with capacity availability far less of an issue than a year ago, or at the renewals completed earlier in 2023.

With the Florida reinsurance renewal now all but completed, broker Howden Tiger has said that risk-adjusted property- catastrophe reinsurance was pricing up by 33% on average at the 1 June renewals.

The Florida Hurricane Catastrophe Fund (FHCF), the fund that provides a reinsurance like reimbursement for a portion of residential property insurers’ hurricane losses, lacks the necessary liquid assets to pay out without needing to issue post-event bonds, likely backed by assessments, if a repeat storm loss of the magnitude of hurricane Ian were to occur.