Report update shows firming of reinsurance markets
Property catastrophe reinsurance rates are firming across most world regions as the market completes April 1 renewals, according to a report update by reinsurance broker Aon Benfield.
Rate rises of 5-10% in Japan have been attributed in part to the strong yen and its pressure on capacity for Japanese programs. In January the outlook was stable for Japan from April through to July.
The outlook for Australia and NZ remains “stable to +10%”.
Aon Analytics CEO Bryon Ehrhart says reinsurers continue to have sufficient capacity to meet the increasing needs of insurers.
While US catastrophe risks do not feature heavily at April 1, insurers are carefully watching the state of Florida’s current legislative session. The state has an estimated $US18.5 billion ($25 billion) shortfall in its projected loss reimbursement commitments from the state-controlled hurricane catastrophe fund.
The report says property catastrophe renewal prices in Europe tended to be about 5%.
Rate rises of 5-10% in Japan have been attributed in part to the strong yen and its pressure on capacity for Japanese programs. In January the outlook was stable for Japan from April through to July.
The outlook for Australia and NZ remains “stable to +10%”.
Aon Analytics CEO Bryon Ehrhart says reinsurers continue to have sufficient capacity to meet the increasing needs of insurers.
While US catastrophe risks do not feature heavily at April 1, insurers are carefully watching the state of Florida’s current legislative session. The state has an estimated $US18.5 billion ($25 billion) shortfall in its projected loss reimbursement commitments from the state-controlled hurricane catastrophe fund.
The report says property catastrophe renewal prices in Europe tended to be about 5%.