Rates

Some four to six carriers are working on rated collateralised vehicles, following in the footsteps of Lumen Re and Humboldt Re, according to Aon managing director of ILS management Steve Britton.

The rate increases were less differentiated than the 1 June Florida rises.

The personal line carrier’s Camp Fire loss estimate is believed to have fallen from $1.8bn to $1.75bn.

The small first layer of its A$7bn reinsurance treaty was expected to face a significant rate increase but upper layers remained flat.

ILS funds have been among the top sources of new demand since 2017, the broker said at an Aon United ILS day in London last week.

The capped increase compares with an 8.5 percent rise envisaged before the measures to curb assignment of benefits abuse.

The insurer paid a rate on line of 11.25 percent for its new personal lines cover.

The California Earthquake Authority’s total risk transfer limit has almost doubled since 2015.

The ILS fund manager reports that the cost of reinsurance via cat bonds is now “painfully expensive” for some cedants.

The research found that commercial insurance prices rose by just over 2 percent in aggregate in Q1.

The size of the Integrity Re coverage may shrink to $50mn.

The company is now targeting $250mn for its latest cat bond, which is being issued in the UK.