Reinsurers, insurers to raise rates after historically high Nat Haz Cat losses in Q3 & Q4 2017? Who’da thunk it? That ‘Captain Obvious’ statement and sarcastic comment aside, why would insurers go along with anything but modest reinsurance rate hikes when there is alternative coverage through the financial markets? Of course, ILS / cat bonds will take hyuuuuuuge hits now or very soon in Q4, and may look to recoup some of their losses by adding volume going forward.
So financial market sources of re cover will temper the projected rate increases, assuming some sources don’t walk away from the market. Their modeling efficiency will be revealed soon in their results, however and whenever they make their reports. So, I don’t know that the speculative moves to be made by the investment firm mentioned at the end of the article will be substantive or successful.
Something tells me that Harvey’s Auto losses of 500,000 vehicles will impact the Auto market. Comes on the heels of State Farm losing $7 Billion just last year without all the storms.
Reinsurers, insurers to raise rates after historically high Nat Haz Cat losses in Q3 & Q4 2017? Who’da thunk it? That ‘Captain Obvious’ statement and sarcastic comment aside, why would insurers go along with anything but modest reinsurance rate hikes when there is alternative coverage through the financial markets? Of course, ILS / cat bonds will take hyuuuuuuge hits now or very soon in Q4, and may look to recoup some of their losses by adding volume going forward.
So financial market sources of re cover will temper the projected rate increases, assuming some sources don’t walk away from the market. Their modeling efficiency will be revealed soon in their results, however and whenever they make their reports. So, I don’t know that the speculative moves to be made by the investment firm mentioned at the end of the article will be substantive or successful.
Something tells me that Harvey’s Auto losses of 500,000 vehicles will impact the Auto market. Comes on the heels of State Farm losing $7 Billion just last year without all the storms.