Rates

10% rate hike recommended for TWIA residential and commercial policies

The Texas Windstorm Insurance Association’s actuarial and underwriting committee has recommended that the residual insurer’s board of directors approve a rate filing to increase rates by 10 percent for both residential and commercial 2025 policies.

“Way too early” for softening reinsurance market: Swiss Re

It is “way too early” for talk of a soft market for natural catastrophe risk, with pricing across commercial lines remaining robust despite having plateaued following a recent peak, according to Swiss Re’s Jérôme Haegeli.

Cyber rates still falling but “some indications” of market firming

Brokers report that cyber rates continue to fall amid strong competition, although Lockton suggests that in the US there are “some indications” that “we may be on the verge of a firming market as claims activity increases”.

Guy Carpenter: US property cat RoL index up 1.2% at H1

Guy Carpenter’s US property catastrophe rate-on-line index increased by 1.2 percent in the first half of 2024, down markedly from January, which the reinsurance intermediary said was driven by the impact of decreased pricing at mid-year.

Ample capacity continues to drive general aviation softening: Gallagher

Ample available capacity in the general aviation sector led to continued rate softening in the second quarter despite considerable loss activity throughout 2024, according to Gallagher Specialty.

Bloomberg warns rate increases needed to offset lingering claims inflation

Claims inflation is likely to remain a “pronounced feature” in the second half of the year, according to a new report by Bloomberg Intelligence, which also warned that insurers will be challenged to increase rates to a sufficient level to fully offset rising expenses.

MarketScout: US P&C commercial rate increases accelerated to 4.4% in Q2

The composite US property and casualty insurance rate increases accelerated from 3.9 percent in the first quarter to 4.4 percent in the second quarter of 2024, according to MarketScout figures.

Lockton: US market “rapidly becoming more buyer-friendly” despite Q1 rate rises

The US commercial insurance market is quickly becoming better for buyers as the property market moderates, workers’ compensation remains profitable and professional lines pricing continues to fall, although liability rates continue to climb, Lockton has commented.

Red Sea rates rise after string of successful Houthi strikes

Red Sea marine war risk rates have risen again following a string of successful Houthi attacks that coincided with the introduction of potentially more lethal tactics by the Iran-backed militant group.

Brokers: “Strong” cyber reinsurance supply leads to improved terms for buyers

Reinsurance brokers have reported that strong cyber reinsurance capacity at the mid-year renewals allowed buyers to improve terms across all structures, with ceding commissions increasing between 1 and 2.5 percentage points for proportional cover.

Gallagher Re: Reinsurance buyers enjoyed “more comfortable” market at 1.7

Reinsurers' strong results in 2023 and so far this year have helped drive a “more comfortable” and “more welcoming” market at the mid-year renewals, according to Gallagher Re’s 1st View report.

Aon: Reinsurance buyers achieved “positive outcomes”, rate reductions at mid-year cat renewal

Reinsurance buyers achieved “generally positive” outcomes at the mid-year renewal, including rate reductions for property cat programs amid “more than ample” capacity versus a year ago, according to Aon’s reinsurance solutions unit.

Gallagher: Property premium increases “moderating” as (re)insurers believe price adequacy is near

Arthur J Gallagher’s management has reiterated strong 2024 organic growth guidance with market conditions characterised by “broad-based renewal premium increases” despite moderation in property.

Ivans: Casualty rate increases accelerate in May while property rises remain roughly flat

The pace of increase in premium renewal rates across three key casualty lines picked up in May in the latest sign of the impact concerns over loss cost trends is having on the sector, according to the latest data from Ivans.

Citizens board approves 14% rate hike as depop forecast increases

Citizens management have said the policy count at Florida’s state-backed insurer could drop below one million by the end of the year, compared to previous forecasts of 1.2 million, as its board approved a proposed personal lines average rate increase of 14 percent.

US pricing feedback gives mixed messages on momentum but peak increases long gone

The latest feedback from brokers and other organisations tracking US commercial insurance pricing is not clear about the momentum of increases, but they are now way down from the peak of late 2020.

Marine liability rates up 10-15% since Baltimore bridge collapse

Direct marine liability rates have increased by 10 to 15 percent since the collapse of Baltimore’s Francis Scott Key Bridge in March, sources told this publication.

Red Sea war rates hold post Laax attack

Marine war risk rates in the Red Sea and Gulf of Aden remain at similar levels to those seen since March with limited appetite for vessels with links to the UK, US or Israel.

AM Best: Pendulum “slanted towards the reinsurers” in Florida renewals

The “pendulum remains slanted toward the reinsurers” at Florida’s mid-year renewals despite the improved market conditions, AM Best has commented, noting that reinsurance dependency remains high among carriers in the Sunshine State.

Property cat reinsurance RoL down 5% on average at 1.6: Howden Re

The reinsurance market is at a “critical juncture” ahead of the 2024 Atlantic hurricane season on the back of 5 percent average reductions in risk-adjusted property catastrophe rates on line at the 1 June renewals, according to Howden Re.

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