Property catastrophe

The importance of choice

One of the key challenges facing the industry as it seeks to expand coverage for uninsured risks which sit within the current ‘protection gap’ is the lack of sufficient modelling tools to manage these exposures.

Oasis secures $2mn funding as industry support for cat modelling alternatives grows

Oasis Loss Modelling Framework has secured commitments to invest more than $2mn from (re)insurers and brokers as the industry ramps up its support for the open-source catastrophe modelling platform, The Insurer can reveal.

Hamilton sponsors $150mn 144A catastrophe bond Easton Re

Bermudian Hamilton has sponsored its first 144A industry loss index-triggered catastrophe bond Easton Re, which will provide the carrier with multi-year risk transfer capacity of $150mn to protect against named storm and earthquake risk in the US.

Goldstein: Florida comparisons weighing on Kingstone share price

Misplaced comparisons between the coastal exposure on the books of Kingstone and its supposed Floridian peers are weighing on the regional Northeastern US company’s share price, the company’s CEO Barry Goldstein believes.

World Bank backs development of Tunisian catastrophe insurance market

The World Bank has approved $50mn in financing to support a disaster and climate resilience project in Tunisia, which will include a public-private insurance mechanism to protect against the financial fallout from natural disasters.

Queensland MP renews call for reinsurance pool

An Australian MP has urged the federal government to establish a national reinsurance pool to help reduce the cost of insurance premiums in north Queensland and across northern Australia.

Reinsurers take large portion of Allstate’s $1.3bn gross winter freeze loss

US carrier Allstate has announced gross loss of $1.3bn from last month’s severe winter freeze, with net losses estimated at $567mn pre-tax reflecting anticipated reinsurance recoveries partially offset by restatement premiums as it also said it had exhausted the deductible on its aggregate cover.

Everest exits tightening Florida condo market

The Florida condominium market has become a “micro hard market” so far this year with Everest Re withdrawing from the space completely and retrenchment along with churn of capacity among other carriers and MGAs.

Aon warns of prolonged loss development from US winter storms

Aon has warned of a “prolonged period of loss development” from the unprecedented stretch of winter weather that hit the US in February, with the company’s latest Global Catastrophe Recap noting that total economic losses from the event are expected to “well exceed $10bn”.

World Bank pulls record $1.36bn Pacific Alliance cat bond

The World Bank has dropped its $1.36bn Pacific Alliance earthquake catastrophe bond, with sources suggesting the fallout from Covid-19 had led to the non-renewal of the placement, The Insurer can reveal.

ILS paid out record amount to sponsors amid Covid volatility

The catastrophe bond market handed sponsors $668mn in loss payments last year in what was the largest percentage of outstanding cat bond notional paid out over the course of a calendar year, according to Swiss Re Capital Markets (SRCM).

Demotech and AM Best act on AmCap ratings after surplus drops 64% in 2021

Demotech has pulled its rating from American Capital Assurance Corp (AmCap) while AM Best has slashed its rating from A- to C after the Florida-based commercial residential and flood specialist reported surplus that plunged from $61mn to just $22mn in 2020 on the back of multiple severe weather losses.

Upsized Citizens reinsurance shows ill-health of FL homeowners market

Cat bond pricing now at seven year high

Cat bond pricing is now at a seven year high and is predicted to increase further in 2021 in parallel with the firming, traditional reinsurance market.

Fast-growing Citizens looks to upsize cat cover by 160% to $2.6bn

Florida’s insurer of last resort Citizens is aiming to significantly scale up its private risk transfer program ahead of the 2021 hurricane season from expiring limit of $1.02bn to around $2.6bn across its coastal and personal lines accounts as it addresses an expanding exposure base.

Cat bonds slump in secondary market following Uri

A number of US-focused cat bonds have seen their prices slump in the secondary market last week following concerns that the winter storm Uri increases the likelihood of them being triggered.

Stonybrook shines light on opaque ILW pricing

Boutique advisory firm Stonybrook Capital has launched a service designed to make the pricing of industry loss warranty (ILW) contracts more readily available and transparent.

FedNat in market for back-up cover after Texas winter storm

FedNat and its broker Aon have been in the market looking to secure back-up reinsurance protection following last month’s Texas winter storm, with the homeowners specialist also expected to restructure its 1 July cat placement to purchase a separate tower for its ex-Florida book, The Insurer can reveal.

Cali FAIR Plan program gets home despite reinsurers’ wildfire concerns

The California FAIR Plan and its broker Aon have successfully completed the placement of a restructured cat reinsurance program with a new $75mn xs $125mn occurrence sub-layer and added a $250mn occurrence layer at the top despite a challenging market for securing capacity for wildfire risk, The Insurer can reveal.

AIR says February winter storm insured losses could be well in excess of $10bn

AIR Worldwide has said the extreme winter weather that impacted Texas and other states from 12 February is likely to exceed $10bn in insured losses and could be driven well in excess of that depending on whether utility service interruption pays out, government intervention, mold damage and other factors.