Hurricane

The decade from 2010 ran the full gamut of catastrophe loss experience, reminding us that there is no such thing as a "new normal" in the world of ILS.

Reinsurers secured concessions on terms and hiked rates as most insurers managed to patch together cover to enter hurricane season.

The cover offers protection for a one-in-160-year first event.

The weather system has arisen early in the season when some insurers are still yet to renew reinsurance.

The university’s predictions increase to 20 named storms, including 10 hurricanes, for the season that started on Wednesday.

The broker noted, however, that at this time last year the consensus was also for a slightly above average season which turned out to be the third most active season ever.

DE Shaw has been offering a form of “capacity wrap” to insurers in which its limit could be used to plug gaps throughout programmes, sources said.

The forecast range of hurricanes is slightly wider than in 2021, but in line with 2020. 

The reinsurer has put the first layer through its captive, a move that reflects the lack of reinsurance capacity for this high-risk business.

The predictions include a scenario that could produce environmental factors that increase risk in late summer and autumn.

One Floridian had “zero” reinsurance in place before weekend.

With reinsurance availability scarce and costs rising, several carriers have called an interim halt to new homeowners’ business.