Reinsurance renewals news

Reinsurance renewals news and articles. Discussing the trajectory of reinsurance pricing and rates, as well as the flow of reinsurance capital at key market renewal seasons where many reinsurance programs are renewed and new reinsurance and retrocession capital and capacity is deployed.

The reinsurance cycle follows a number of key renewal seasons and the news and analysis below covers these important reinsurance market renewals.

The key reinsurance renewal periods are at January 1st, April 1st, June 1st and July 1st.

The January renewals have a particular focus on European programs, Asia Pacific (ex. Japan), casualty and specialty risks. The mid-year reinsurance renewals see a particular focus on U.S. property catastrophe reinsurance renewals, with Florida a particular focus in June. Japanese reinsurance program renewals are a major focus at April 1st.

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Fragile market, perhaps significant ILS capital trapping, to sustain rates – CS analysts

The reinsurance marketplace remains fragile after a number of years of subpar returns and more recent stresses, which is expected to help price increases continue into 2021, albeit at decelerating positive rate levels, according to equity analysts at Credit Suisse. Having spoken with reinsurers and also insurance-linked securities (ILS) sector experts, read the full article →

Cat bond rates-on-line accelerate 11% in Q2, hard market entrenched: Lane

Catastrophe bond and insurance-linked security (ILS) rates-on-line continue to accelerate away as the hard market persists, rising another 11% in the second-quarter of 2020, according to the synthetic ILS rate-on-line Index calculated by Lane Financial. Cat bond and ILS rates and pricing continue to sit in what Lane Financial would call read the full article →

United (UPC) reports $30m Q2 catastrophe losses, after reinsurance

Florida headquartered, expansive catastrophe exposed primary property insurer United Insurance Holdings (UPC Insurance) has pre-reported an expected $30 million pre-tax hit from numerous catastrophe and severe weather events that struck its book of business in the second-quarter. The $30 million pre-tax hit is after accounting for any reinsurance recoveries made by read the full article →

Covid-19 losses to take years to catch up to industry estimates: Willis Re

Currently, bottom-up Covid-19 pandemic loss announcements from insurance and reinsurance companies stand at only around $6 billion, some way short of the wide ranging $30 billion to $100 billion industry loss estimates and broker Willis Re warns it will likely take years to catch up which has ramifications for the read the full article →

Suncorp restructures agg cover at renewals, seeks reinsurance innovation

Australian primary insurer Suncorp has restructured its reinsurance program at the July 1st renewals, adding a new A$400 million Aggregate Excess of Loss (XoL) cover, in place of its previous natural hazards aggregate and stop-loss protections. Speaking this morning, Suncorp Group CEO Steve Johnston explained a company wide transformation plan, with read the full article →

U.S. renewals lead way in “persistent” July reinsurance hardening: Willis Re

U.S. treaty reinsurance business led the way on rate increases at the July 1st reinsurance renewals, with their rates outpacing international contracts, according to broker Willis Re. The broker reports a measured and prudent approach to the mid-year reinsurance renewals, as carriers sought to deliver on client value but with one read the full article →

Lack of reinstatement premium protection capacity in Florida an ILS opportunity

Some insurance carriers in Florida have struggled to secure sufficient Reinstatement Premium Protection (RPP) coverage for the reinsurance towers they have renewed, due to a lack of capacity for this specific offering and reduced appetite, all of which could present an opportunity for ILS funds. Speaking during a recent webinar held read the full article →

Assurant shrinks reinsurance tower, increases multi-year coverage

U.S. specialty insurance group Assurant has shrunk down the top of its reinsurance tower at its July 2020 renewal, securing less coverage than a year ago to reflect changes to its exposure and reduced writings. Assurant's 2020 property catastrophe reinsurance tower provides for U.S. coverage of $930 million and Florida specific read the full article →

Heritage targets diversifying growth with AIG Private Client deal

Heritage Insurance Holdings, Inc., the Florida headquartered and nationally expanding U.S. property casualty insurer, has struck a deal with insurance giant AIG that will see Heritage taking on some of its Private Client Group policy renewals. The arrangement is due to American International Group's (AIG) new focus on the high net read the full article →

Florida Citizens 17% growth in 2020 may drive reinsurance requirements

Florida’s Citizens Property Insurance Corporation is likely to see an increasing need for more risk transfer and reinsurance over the coming year, as it forecasts that its assumption of risk and policies will accelerate, with the state of the Florida insurance market set to drive its portfolio up by 17% read the full article →