loss creep

During the third-quarter of the year, Universal Insurance Holdings, the Florida headquartered primary insurance carrier, continued to experience loss creep from 2017’s hurricane Irma, ceding additional losses through to reinsurance sources.

In June and July we understand that loss creep related factors have continued to affect some insurance-linked securities (ILS) funds, particularly those focused on private collateralised reinsurance deals, as uncertainty persists over potential impacts from the COVID-19 pandemic and prior year catastrophe losses begin to crystalise.

Loss costs on Florida property insurance business continue to be impacted by social inflation, according to the CEO of Universal Insurance Holdings, but this hasn’t put the carrier off writing more business in the state, with its Florida book expanding in Q2.