Reinsurance News
Catastrophe reinsurance
Catastrophe reinsurance news includes coverage of the main catastrophe reinsurance renewals, pricing trends and market developments, as well as analysis of reinsurance market exposure to major natural catastrophe loss events.
The catastrophe reinsurance market remains a core component of global reinsurance and one of the most competitive sectors.
Read all our catastrophe reinsurance news below.
Catastrophe claims 48% above average by end of November: Jefferies
17th December 2021
Analysts at Jefferies have reported that insured natural catastrophe losses are running 48% higher than the long-term average, as of the end of November, and 34% above the 10-year average. It now appears certain that insured catastrophe losses will be far higher than the annual totals for the past three years, ... Read the full article
Zurich won’t change reinsurance significantly despite aggregate exhaustion: CFO Quinn
11th November 2021
Insurer Zurich has no intentions to significantly alter its use of reinsurance protection despite the impacts of hurricane Ida and the European floods exhausting the company's aggregate catastrophe cover in the third quarter, according to Chief Financial Officer (CFO), George Quinn. Alongside robust premium growth, Zurich's Q3 2021 results highlighted ... Read the full article
More rate needed, but cat is clearly a profitable line: Munich Re CFO
10th November 2021
While many of the catastrophe prone markets have already experienced hardening over the past few years, higher prices are still required for some of the less impacted geographies and perils, but overall, Munich Re is pleased with the profitability of its catastrophe book, according to its Chief Financial Officer (CFO), ... Read the full article
Insured cat losses more than double average year-to-date level: Jefferies
14th October 2021
Analysts at Jefferies have reported that insured natural catastrophe losses year-to-date are running 103% higher than the long-term average, and are already greater than the full-year claims burden for 2018, 2019 and 2020. This means losses are more than double what they would usually be at this stage in the year ... Read the full article
Reinsurers could be underestimating nat cat exposure by 33-50%: S&P
23rd September 2021
Analysts at S&P Global Ratings believe that reinsurers could be underestimating their exposure to natural catastrophe risks by between 33% and 50%, despite recent efforts to better incorporate climate change considerations into their business models. A new stress test by the rating agency highlighted the potential for significant volatility in earnings ... Read the full article
Uri could signal above-average cat loss year: Barclays
15th March 2021
Analysts at Barclays believe that the unprecedented level of losses caused by February’s Winter Storm Uri in the US could be “setting the stage” for another above-average catastrophe year for re/insurers. Current industry loss estimates put the cost of Uri in the $15 billion to $18 billion range, which Barclays notes ... Read the full article
Nat cat risk could become less insurable in future: Fitch
8th March 2021
Analysts at Fitch Ratings believe that natural catastrophe risks could become “less insurable” in future due to the effects of climate change, as well factors like insurance density and economic growth. Re/insurers will likely need to raise premiums in response to the rising severity and frequency of nat cat events, but ... Read the full article
Aon warns of rising secondary peril losses for re/insurers
21st September 2020
Re/insurance broker Aon has warned that secondary perils are accounting for an increasingly significant portion of global catastrophe losses and pose notable challenges for insurance and reinsurance companies. While tropical cyclones often attract the most focus given the high financial toll that landfalling events can cause, losses from secondary perils cannot ... Read the full article
Cat losses to exceed 2019 levels, boost reinsurance pricing: KBRA
21st September 2020
Analysts at Kroll Bond Rating Agency (KBRA) believe this year’s active hurricane season, along with growing costs of the US wildfires and the COVID-19 pandemic, will cause insured catastrophe losses to exceed 2019 levels. The result of this elevated catastrophe bill will be further upward pressure on reinsurance pricing, KBRA said, ... Read the full article
KBW forecasts growing reinsurance losses & stronger rate increases
24th August 2020
Analysts at KBW are forecasting growing reinsurance losses in 2020 and stronger reinsurance rate increases next year, based on loss activity over the year so far. Reinsurers Munich Re and Swiss Re have already estimated that insured catastrophe losses will total $27 billion and $31 billion over the first ... Read the full article
Global insured cat losses below average at $31bn in H1: Swiss Re
11th August 2020
Swiss Re Institute estimates that global insured catastrophe losses were $31 billion in the first half of 2020, up from $23 billion last year but well below the average H1 cost of $36 billion. Global economic losses from natural catastrophes and man-made disasters came to $75 billion in H1 2020, according ... Read the full article
Analysts call for more collaboration between re/insurers and academia
28th May 2020
Research collaboration organisation Lighthill Risk Network Ltd (Lighthill) has called on the global re/insurance sector to support a coordinated effort to establish and improve links with academia. By working more closely with academics and researchers, Lighthill believes the re/insurance industry can deepen its understanding of systemic risks facing societies. As part of ... Read the full article
Philippines simplifies bidding process for state reinsurance scheme
27th May 2020
The Philippines has simplified the bidding process for reinsurers as the country tries for the second time to secure reinsurance protection to protect state assets and infrastructure from natural catastrophes, according to reports from The Philippine Daily Inquirer. Reinsurers will be invited to re-bid one the one-year national indemnity insurance program ... Read the full article
Lower cat losses to lift US P&C profits: AM Best
23rd April 2020
AM Best expects the financial performance of the US property and casualty (P&C) industry to show improvement for 2019, with results benefiting from a lower level of catastrophe losses and an improving rate environment in key lines, particularly short-tail property lines. The rating agency expects the 2019 combined ratio to improve ... Read the full article
Bank of Montreal (BMO) hit by typhoons after decision to exit reinsurance
25th February 2020
The Bank of Montreal (BMO) has revealed that it was hit by CAD 25 million (USD 19 million) of reinsurance claims from the Japanese typhoons in 2019, which occurred just week’s after its decision to wind down its reinsurance business. BMO underwrites reinsurance, including catastrophe risk, through its BMO Reinsurance Limited ... Read the full article
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