Reinsurance renewals news

Analysts at BofA Securities Inc. are the latest to opine on the state of the reinsurance market and they conclude, as others have, that the hard market environment is likely to persist into 2024 and perhaps even beyond.

At the January 2024 reinsurance renewals, the expectation from market participants in Bermuda is that the areas that will see the greatest pressure on rates will be in the higher layers and retrocession, while the European catastrophe reinsurance renewals are expected to see increases, analysts at KBW have said.

The Board of the Texas Windstorm Insurance Association (TWIA) approved its staff to begin the process of renewing both catastrophe bonds and reinsurance for 2024 yesterday, with the understanding that around $1 billion more in reinsurance funding may be needed in 2024.

Insurance carriers in the state of Florida have become more creative with how they approach their reinsurance program needs, finding solutions and using alternatives to ensure protection, but challenges persist, rating agency KBRA said in a new report. We think this could lead to some interesting renewal activity in 2024, given the efficiency of ILS […]

The California Earthquake Authority (CEA) increased the size of its overall risk transfer and reinsurance program up to November 1st, hitting that date with $9.26 billion in-force, as part of which the CEA’s catastrophe bonds had increased their share.

Despite the rate increases that have already been achieved across catastrophe exposed property insurance and property catastrophe reinsurance, it is the view of most reinsurers that property cat pricing is still insufficient, according to Amwins.

The Texas Windstorm Insurance Association (TWIA) is expected to buy more reinsurance and risk transfer in 2024 as its exposure grows and it has been advised to get into the catastrophe bond market sooner than later to renew a maturing issuance, while also starting its reinsurance renewal planning as soon as possible.

Florida’s property insurer of last resort, Citizens Property Insurance Corporation, could increase its purchase of reinsurance and catastrophe bond backed risk transfer in 2024, with its new layer structure following the merging of its accounts suggesting as much as $5.5 billion could be purchased next year.

Analysts in the European insurance team at investment banking giant Deutsche Bank are forecasting that risk-adjusted reinsurance renewal prices will be broadly neutral to slightly up in 2024, with the hard market persisting throughout the year.

LGT ILS Partners, the specialist dedicated insurance-linked securities (ILS) investment unit of the private bank and asset manager LGT Capital Partners, is confident that market conditions are going to remain attractive into 2024, even expecting some marginal price increases in certain areas of the reinsurance renewals.