Florida cat cover: Rates down 10-15%

Here’s Guy Carpenter on Florida’s cat reinsurance renewals, most of which incept June 1:

[Reinsurance pricing] continued its 2010 trend of price declines and dropped year over year on a risk adjusted basis by 10 percent to 12 percent on average. This drop returns pricing to a level close to that seen in 2008, particularly in upper layers.

And Global Reinsurance, citing Aon Benfield:

For Florida reinsurance programmes, which represent the majority of activity at the June 1 renewals, reinsurers have experienced positive underwriting results for the past four years due to minimal reinsured catastrophe events, Aon Benfield said. The record levels of capital pushed rates down by 10% to 15% on average, with greater variance based on reinsurers’ views of cedant credit quality.

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One thought on “Florida cat cover: Rates down 10-15%

  1. […] current hurricane season will likely be a rough one. That means exposure is high. So why are rates lower? By jimlynch9999, on June 2, 2010 at 8:13 am, under catastrophes, hurricanes. Tags:Catastrophes. […]

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