Reinsurance prices moderated at the June 1 renewals, partly due to price reductions from previous seasons and significant amounts of new limits, according to Guy Carpenter.

“Many reinsurers held the line against more extreme declines, even though capacity was still plentiful and low loss experience continued,” Global Head of Property Specialty Lara Mowery said.

“Also, while mid-year has not been a core date for retrocession renewals, there has been a significant amount of activity in this marketplace, as buyers sought to offset their catastrophe exposures.”

The reinsurance broker says demand for reinsurance in Florida has picked up after two years of decreased pricing.

“This was fuelled, in part, by companies’ desire to enhance their risk management structures. 

“This was also the first renewal season in several years that the Florida Hurricane Catastrophe Fund had no outstanding post-event bonds, allowing companies to reduce their [fund] coverage and explore private market alternatives.”