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The news marks the second year in a row members have ceded more than $1bn in risk to the Caribbean Catastrophe Risk Insurance Facility.
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Total spending was up 2% as the Floridian carrier cut back the limit it bought by 10%. -
The organisation has $170mn less cover in place than the $2.1bn it had for the 2020 and 2019 hurricane seasons.
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Last year it secured just NZ$6.2bn of protection from major nat cat events, as premium spending went up by 11%.
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The Florida reinsurance renewals ran more smoothly, with lower overall rate increases than initially expected.
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New and growing carriers helped to fill out treaties as Sompo stepped back from a market that came in flatter than expected for remote risk.
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The carrier cut back its treaty limit by around 13% and lowered its deductible.
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Divergence between appetite for upper and lower layer reinsurance risk may drive some panel turnover, and disadvantage some segments.
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Berkshire, along with some other expansive reinsurers, grew its level of assumed reinsurance premium from top Florida insurers significantly in 2020, as the ILS market share dropped overall.
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The company also procured approximately $180mn of incremental limit for earthquakes.
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Pockets of the distressed Florida market are still expected to face a challenging renewal, but much of the remediation was carried out last year.
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Reinsurers are still hoping to achieve double-digit rate increases, but brokers and cedants suggest this is unlikely against the context of strong reinsurance supply.
