Reinsurers increase peak zone cat risk exposure
Wednesday, 04 06 2016, Category: Insurance and Reinsurance, Country: World
Despite continued softening and resulting rate declines at the January 1st renewals, reinsurers’ probable maximum loss (PML) disclosures reveal that many actually increased their allocation to peak zone catastrophe risks, according to Moody’s Investors Service.
January 1st modelled PML exposures reveal that the majority of firms increased, or maintained a generally flat level of exposure to peak zone catastrophe risks during the period as a percentage of equity capital, with U.S. wind and U.S. earthquake being the most prevalent.
This is at a time of limited profitability and organic growth potential in the global insurance and reinsurance industry, owing to the continued softening reinsurance landscape that’s exacerbated by the benign loss environment and ample capacity from both traditional and alternative sources.