Reinsurance renewals news

This morning global reinsurer Munich Re said that “prolonged” market hardening is expected in reinsurance, with rate rises forecast for the January 2022 renewals and European contracts seen as particularly important, as major losses and inflation indicate more pricing discipline.

For the second year running, Hannover Re’s German subsidiary E+S Rückversicherung AG has forecast rising reinsurance prices at the renewals, but this year it’s down to the significant catastrophe losses suffered.

Florida’s homeowners insurance market is experiencing “unsutainable” conditions and the consistency of loss across the marketplace is seen as “staggering”, according to the CEO of Florida’s Citizens Property Insurance Corporation Barry Gilway.

Reinsurance capacity and reinsurance pricing have to rise further in order to cover the growing risks posed by climate change, climate-related risks and so-called secondary peril catastrophe events, Swiss Re’s Frank Reichelt explained today.

Following recent pre-announcements of natural catastrophe losses from the third-quarter of 2021 and with the expectation that more will be delivered, with the industry facing a relatively significant quarterly catastrophe burden, KBW’s analyst team note that they are “modestly optimistic” on property catastrophe reinsurance pricing for the 2022 renewals.

RenaissanceRe (RenRe), the Bermuda headquartered global reinsurance firm and third-party capital management specialist, has pre-announced an expectation of $725 million of net catastrophe losses for the third-quarter of 2021, a particularly significant hit for the period.

For our latest Artemis Live video interview, we were joined by Tom Johansmeyer, Head of PCS to discuss the subject of cyber risk and ask the question, why isn’t it a bigger exposure in the insurance-linked securities (ILS) market?

Florida’s Citizens Property Insurance Corporation continues to see increasing policy counts as ongoing challenges in the private market drive policyholders back to the residual market, resulting in expanding exposure levels and putting depopulation, or takeouts, back in focus.

Property insurance rates continue to soar higher for homes and businesses in catastrophe exposed regions of the United States, while coverage issues are increasingly emerging for those high-value buildings in peak catastrophe zones.

The New Zealand Earthquake Commission (EQC), the state-owned residential property disaster insurance entity, is likely to need more reinsurance protection from private markets as new rules are set to dramatically expand the amount of catastrophe risk it takes on.