insurance

The legislative reforms aimed at improving the property insurance market in Florida are increasingly seen as having a positive effect, with carriers increasing their appetite for writing in the state and analysts suggesting the benefits of the reforms could be significant over time.

Munich Re said this morning that while market pressure has increased slightly in reinsurance, the company anticipates positive conditions continuing through the April and July renewals, although at the same time cautioning that pricing must remain adequate to cover severe weather risks.

Third-party investor capital under management in reinsurance joint-ventures and insurance-linked securities (ILS) funds managed by RenaissanceRe’s Capital Partners division reached almost $7 billion at the start of 2024, with the firm’s catastrophe bond fund strategy driving the largest share of the last year’s growth.

The Berkshire Hathaway insurance and reinsurance businesses delivered as Warren Buffett had anticipated in 2023 and the result drives home investor attraction to the sector right now, with a stunning performance and $3.5 billion in earnings reported by the property and casualty reinsurance arm.

Australian insurance giant Suncorp believes that global reinsurance markets have stabilised, while explaining that it has raised prices to cope with the higher costs of reinsurance, elevated natural catastrophe and weather claims, as well as inflationary factors.

Insurance-linked secuities (ILS) market participants are seeing a demand-driven opportunity emerge in collateralized reinsurance and retrocession, but speakers at our recent ILS NYC 2024 conference said that while investor demand for returns from these products is rising again, the clarity of coverage terms is key.

Global insurance and reinsurance giant AXA has significantly expanded its catastrophe reinsurance protection at the January 2024 renewal season, with much more limit purchased but all of its retentions kept stable year-on-year.

European headquartered re/insurer Zurich has further adjusted its catastrophe reinsurance arrangements for 2024, adding a new top-layer of protection in Europe, so lifting the top of that tower, while reducing its US all-perils retention so coverage will attach earlier there.

Australia has experienced more severe thunderstorms and damaging weather, with storms that impacted the Victoria region on Valentine’s Day being designated as a ‘Significant Event’ by the Insurance Council of Australia (ICA).

The subject of volatility in re/insurers results due to frequency loss events and the fact they require capital and risk transfer to help them manage this, came up during one of the panel sessions at our recent ILS NYC 2024 conference in New York on February 9th.