Insurance Price Increases ‘Not Broad Based’
Bermuda re/insurers are seeing price increases for property catastrophe risks — but a recent series of global disasters has not translated into broader industry increases, according to report recently issued by industry analysts Keefe, Bruyette & Woods.
In a research note, KBW says discussions with 12 Bermuda insurers, reinsurers and brokers indicated that rates for property and catastrophe on mid-year reinsurance renewals are up between eight and 12 percent, and the outlook is for continued increases into January renewals for those risks.
Outside of the United States, primarily in Australia, New Zealand and Japan – the three regions which experienced devastating natural disasters this year —rate increases are expected to reach or exceed 50 percent.
And European property rates are expected to be impacted come January 1 renewals.
However, KBW says executives indicated that the increases were not broad-based.
KBW noted that “demand was lower than some expected and there was sufficient capital to meet demand.”
Earlier this year KBM accurately predicted first quarter losses for Bermuda re/insurers would be the worst ever for the industry given the calamities in Australia, New Zealand and Japan.
