One leading, but little-discussed, cause of this coverage crunch: a big increase in the cost of reinsurance policies. Now all eyes are on a round of reinsurance renewals currently under way in Florida and elsewhere that will help determine whether more premium increases are in store for homeowners.
Tag: reinsurance costs
The Fight for Price: Middle-Market Risks Shop Their Insurance Programs
Ballooning reinsurance costs, weather events resulting in claims and heightened property values are all contributing factors to rising property insurance premiums.
How to Help Your Clients in the Tough Property Insurance Market
The commercial property insurance market remains challenging, with several factors contributing to difficult conditions and premium increases. First, the frequency and severity of catastrophic events have caused significant losses globally. Second, reinsurance costs have risen due to catastrophic events, inflation, and selective reinsurance. Third, underinsurance is a concern, with many business owners needing to adjust their policy limits.
July Renewals See Attachment Levels & Costs Rise: Gallagher Re
According to Gallagher Re’s 1st View report, almost all buyers of protection were able to secure their reinsurance coverage at a July 1st, 2022, renewals shaped by economic factors that helped to sustain market hardening. Following the June 1st reinsurance renewals, all eyes turned to the later mid-year renewals in July, due to a decrease… Continue reading July Renewals See Attachment Levels & Costs Rise: Gallagher Re
Olympics without Crowds to Cost Reinsurers $300M–$400M: Fitch
Japan’s decision to bar spectators from the Tokyo Olympics is likely to cost the global reinsurance sector $300 million–$400 million due to payouts for ticket and hospitality refunds, Fitch Ratings says. However, this is only 10%–15% of the amount reinsurers would have faced had the Olympics been cancelled, and its impact on earnings should be… Continue reading Olympics without Crowds to Cost Reinsurers $300M–$400M: Fitch
What Rising Reinsurance Costs Mean for South Florida Property Owners
Here’s a grim note for the budget: the cost of insuring real estate is going up. Again. A sure sign: Reinsurance companies — the ones that sell insurance to insurance companies — have increased rates between 10% to 60% for insurance companies in South Florida, local insurance experts said since 2018 . Blame big losses… Continue reading What Rising Reinsurance Costs Mean for South Florida Property Owners