Renewals

The increase gives an early indication that reinsurers may be able to secure significant increases at this year’s Floridian renewals.

Reinsurers avoided another lacklustre renewal season with loss-affected business in Japan, the US and the retro market attracting rate rises.

The relationship between Florida insurers and their reinsurers is obviously going through a rough patch. It makes you wonder whether the role of brokers this year might be akin to that of marriage counsellors.

ILS managers are upping the pressure on Florida reinsurance buyers to change terms and conditions or retain more risk as 1 June renewal negotiations continue.

In the US April renewals, loss-impacted business rose by 5 to 20 percent.

Why has ‘payback’ become a dirty word in the reinsurance markets?

The state is “still a cash cow for reinsurers” as over the past decade the Florida reinsurance combined ratio has been running at 79-80 percent, according to the analysts.

The rate outlook from consultancy firm Raymond James is below the 20 percent-plus correction that reinsurers are pushing for.

Some reinsurers are saying their views of Florida risk have changed post-Irma.

The impact of Hurricane Irma loss creep is coming to the fore ahead of the June renewals.

After entering the market in loss-struck 2018, the pension fund was prepared to lift its allocations to Aeolus and Catco for 2019.

The $50mn ILS vehicle of Fidelis, led by CEO Richard Brindle, was launched on 1 June 2018.