USA - Renewals hint at reinsurance pricing floor
Wednesday, 06 08 2016, Category: Insurance and Reinsurance, Country: United States
A number of trends noticed during the recent June 1st reinsurance renewal point to the proximity of a pricing floor for U.S. property catastrophe reinsurance, and these trends are expected to be seen more widely through the U.S. nationwide accounts renewing in July.
The much discussed pricing floor has been anticipated for some time in U.S. property catastrophe reinsurance, with signs at the January renewal suggesting that underwriters, both on the traditional and alternative or ILS side of the market, are increasingly feeling that rates are no longer always compensating them for assuming risk.
At the June reinsurance renewal, one of the market’s key junctures as it features a significant proportion of the Florida property catastrophe market renewing, the accepted opinion on rates is that they were typically down up to -5% from the previous year, but that some accounts traded roughly flat.