Good work. Run the baseline on the old cat model and you see the effect of a pure rate increase for limits. Add the additional limits required by the revised models and you have the double wammy of cat reinsurance costs. Gotta make up for New Zealand, Australia and Japan cats.
Not to mention all of our domestic cat losses. I wonder how much re-insurance State Farm had for Alabama and the other states. I heard they didn’t have it for Katrina and had to eat the whole thing. I wonder if they learned their lesson.
Can we all say rate increases? Reinsurers to companies to consumers. It is inevitable and may signal the end of the soft market.
Good work. Run the baseline on the old cat model and you see the effect of a pure rate increase for limits. Add the additional limits required by the revised models and you have the double wammy of cat reinsurance costs. Gotta make up for New Zealand, Australia and Japan cats.
Not to mention all of our domestic cat losses. I wonder how much re-insurance State Farm had for Alabama and the other states. I heard they didn’t have it for Katrina and had to eat the whole thing. I wonder if they learned their lesson.