Reinsurance News
Florida reinsurance news
All of our Reinsurance News related to the Florida insurance marketplace, featuring news and analysis of the annual June renewal season, as well as Florida-specific stories.
Reduced Florida exposure the “most prudent course” despite higher rates: Hiscox
15th June 2020
Despite reports of some meaningful rate increases across the property catastrophe reinsurance sector at the mid-year renewals, Hiscox's Ross Nottingham has warned that improvements could be offset by the rise in the cost of risk in Florida. After consecutive heavy loss years, some fairly significant loss creep and low interest rates, ... Read the full article
Citizens opts against fresh multi-year cover on “significant price increases”
4th June 2020
Florida’s Citizens Property Insurance Corporation has announced that owing to "dislocation in the reinsurance markets and significant price increases," it opted against securing multi-year reinsurance protection and placed a smaller, cost efficient risk transfer program for 2020. As we wrote previously, Citizen was reportedly out in the market seeking fresh ... Read the full article
Property catastrophe reinsurance rates rise 26% at June 1st: Hyperion X
2nd June 2020
Data from Hyperion X Analytics reveals that property catastrophe reinsurance rates-on-line increased by an estimated 26.1% at the June 1st, 2020 reinsurance renewals. The company has released its June 1st property cat rate-on-line index, which indicates average risk-adjusted rate increases of 26.1%. Prior to the COVID-19 pandemic, reinsurance rates were expected to ... Read the full article
FHCF will not renew its private market reinsurance in 2020
28th May 2020
It's been announced that the Florida Hurricane Catastrophe Fund (FHCF) will not be renewing its expiring $920 million private market reinsurance placement for 2020. The 2019-2020 private reinsurance placement, which was led by reinsurers Swiss Re and RenaissanceRe, is scheduled to expire ahead of the 2020 Atlantic hurricane season. However, in ... Read the full article
Reinsurance rate increases to continue through 2021: KBW
22nd May 2020
Analysts at KBW believe that reinsurance rate increases will be sustained at least through to January 2021, as reinsurers contend with higher retrocession costs. The firm released its forecasts for the upcoming June and July renewals following a series of virtual meeting with Bermuda executives from two reinsurance brokers and four ... Read the full article
Florida renewals a “perfect storm” of challenges, warns Demotech
20th May 2020
Financial analysis firm Demotech has warned that the Florida reinsurance renewals will bring a myriad of challenges for the market, with COVID-19 issues piling on top of a shortage of retro cover, continued loss creep, and legislative issues. Even before the pandemic, analysts had anticipated that 2020 would not be business ... Read the full article
Florida renewal rate increases of at least 20%: KBW
20th May 2020
After conducting virtual field research in Florida, analysts at Keefe, Bruyette & Woods are expecting reinsurance pricing in the state to increase at least 20%. One CEO reported hearing about 30-50% rate increases in the marketplace, with particularly vulnerable companies given only 24 hours to decide whether to accept 75%-plus rate ... Read the full article
Florida Citizens targets $1.581bn reinsurance & cat bond renewal for 2020
4th May 2020
Florida’s Citizens Property Insurance Corporation is out in the market seeking roughly $1.581 billion of fresh reinsurance coverage from its 2020 reinsurance renewal of both traditional and catastrophe bond coverage. Our sister publication Artemis was first to report today that Florida Citizens is back in the catastrophe bond market targeting ... Read the full article
Floridian insurers maintain ratings through varied forms of adaptation: Demotech
3rd April 2020
Despite myriad challenges facing Demotech rated carriers in the State of Florida, insurers have evolved to maintain Financial Strength Ratings (FSRs) of A or better, and have also expressed their commitment to Florida's residential property insurance marketplace. Described by Demotech as the most complicated, dynamic insurance marketplace in the U.S., the ... Read the full article
Demotech affirms Security First’s FSA of A, Exceptional
25th March 2020
Demotech has affirmed the Financial Stability Rating (FSA) of A, Exceptional, assigned to Security First Insurance Company. Financial analysis firm Demotech warned in January of this year that it was expecting downgrades for a number of carriers in Florida as a result of pressures on operating performance. Yesterday, Demotech affirmed ... Read the full article
Florida House votes to limit rising attorney fees
6th March 2020
The Florida House of Representatives has passed legislation aimed at limiting exorbitant attorney fees on property insurance lawsuits. It’s hoped this will stop the rising trend of contractors soliciting the transfer of rights from insureds and subsequently inflated repair costs, all while using the legal system to their advantage. For several years ... Read the full article
Heritage boosted by shift away from Florida, says CEO
4th March 2020
Bruce Lucas, CEO of property and casualty (P&C) insurer Heritage Insurance Holdings, Inc, has said that the company’s performance has been boosted by its shift away from Florida business in recent years. Although it remains domiciled in Florida, since 2016 Heritage has been shutting off business in what it considers ... Read the full article
KCC submits flood model for certification in Florida
4th March 2020
Catastrophe risk modeller Karen Clark & Company (KCC) has submitted its flood reference model to be certified by the Florida Commission on Hurricane Loss Projection Methodology. The firm claims that its flood model is the first to be submitted under the state of Florida’s flood model standards The KCC Flood Reference Model ... Read the full article
HCI’s Homeowners Choice agrees policy replacement deal with Anchor
17th February 2020
Homeowners Choice Property & Casualty Insurance Company, Inc., a subsidiary of HCI Group, Inc., has entered into a definitive policy replacement agreement with Anchor Property & Casualty Insurance Company. It was announced in mid-January that Homeowners Choice was to acquire the insurance policies of Florida-based Anchor for an undisclosed purchase ... Read the full article
RenRe could pull back in Florida if rates stay low, says CEO
7th February 2020
RenaissanceRe could further reduce its exposure to Florida domestic companies if rate increases do not meet the companies return hurdles this year, according to its President and CEO, Kevin O’Donnell. Speaking in an earnings call alongside the release of RenRe’s Q4 and 2019 results, O’Donnell warned of “substantial structural issues” ... Read the full article
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