Reinsurance News
Reinsurance renewals news
Reinsurance renewals are the key points in the year when the majority of reinsurance contract renewal negotiations occur and are completed.
The reinsurance renewal seasons provide insight into reinsurance pricing, contract terms, reinsurance market positioning and the direction of future trends in the market.
Key reinsurance renewals occur at: the 1st of January, which is the biggest renewal of the reinsurance year and has a broader global focus; April 1st when Japanese reinsurance renews; June 1st for Florida reinsurance renewals; and July 1st when more US reinsurance business gets renewed.
Our reinsurance renewals news covers all of these key points in the year and we also provide analysis and insight into what to expect at upcoming renewal seasons as well.
Australian carriers face reinsurance price hike at July renewal: Morgan Stanley
16th June 2020
Australia's primary insurers, which make heavy use of reinsurance and which have exceeded cat budgets in recent years, face a significant increase in reinsurance rates at the upcoming July 1 renewals, according to Morgan Stanley. Amid a wider global trend of reinsurance hardening, Australia in particular has seen a consistent increase ... Read the full article
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
Lancashire sees rate increases of up to 30% at June renewals
11th June 2020
Specialty insurer and reinsurer Lancashire Holdings Limited has reported rate increases of 20%-30% for its Florida property catastrophe portfolio at the June 1 renewals. The company expects the momentum of rising rates to continue in this and other classes of business across its portfolio during the rest of this year and ... Read the full article
HCI secures larger reinsurance limit at renewals despite increasing rates
10th June 2020
HCI Group, Inc., a Florida-headquartered property and casualty insurer, grew the size of its catastrophe reinsurance cover by approximately 31% at the mid-year 2020 renewals, securing a total limit of $1.93 billion on a first and second event basis. HCI's two insurance subsidiaries, Homeowners Choice Property & Casualty Insurance Company, Inc. ... 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
TWIA secures $2.1bn of reinsurance & cat bonds after raising 2020 target
4th June 2020
The Texas Windstorm Insurance Association (TWIA) has completed the renewal of its 2020 reinsurance program, securing $4.2 billion in total aggregate funding, effective June 1st, 2020 to May 31st, 2021. The $4.2 billion in total aggregate funding includes $1.1 billion of traditional reinsurance coverage for a one-year term, and $1 billion ... Read the full article
All CCRIF Caribbean members renew parametric insurance coverage
4th June 2020
The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility) has announced that all member governments in the Caribbean have renewed their parametric insurance coverage ahead of the 2020 Atlantic hurricane season, increasing the size of the pool by 8% to more than $1 billion. Acting as a risk ... Read the full article
United Insurance renews cat reinsurance programs
3rd June 2020
United Insurance Holdings Corp. (UPC Insurance) has renewed its catastrophe reinsurance programs at June 1, including an increased multi-event cascading limit of $3.257 billion. The limit was increased by $101 million, or 3.2% on the $3.156 billion of multi-event cascading limit that UPC purchased for its 2019/20 core catastrophe reinsurance program. It ... Read the full article
FedNat agrees terms of cat reinsurance renewal, cites hardening market
2nd June 2020
FedNat Holding Company (FedNat) has announced the terms of the renewal of its 2020-2021 catastrophe reinsurance program, securing $1.3 billion of single-event reinsurance coverage and aggregate coverage of up to $1.9 billion. The aggregate reinsurance limit of $1.9 billion represents a slight increase on the previous year, while the single-event cover, ... Read the full article
NMI Holdings secures new quota share reinsurance cover
2nd June 2020
Mortgage insurance specialist NMI Holdings has announced that its wholly owned subsidiary, National Mortgage Insurance Corporation (National MI), has entered into a new quota share reinsurance arrangement. Under the new arrangement, National MI will cede 10.5% of its primary business to a broad panel of reinsurers. The coverage applies to business written ... 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
Palomar completes June reinsurance renewal
19th May 2020
Specialty property insurer Palomar Holdings has announced the successful completion of its June 1, 2020 reinsurance programs. The company procured $200 million of incremental limit for California earthquakes, $300 million of incremental limit for all earthquake zones, and $80 million of incremental windstorm limit. Reinsurance coverage now exhausts at $1.4 billion for ... Read the full article
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