Rates

Since the 2017 and 2018 California wildfires reinsurers have become increasingly cautious of the risk, the rating agency said.

Axa XL cut back revenues on property cat reinsurance business by 7 percent in H1.

The carrier has meaningful available capacity to deploy, according to CFO François Morin.

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.