Rates

Capital has begun to flow again after a challenging time for ILS fundraising in 2022 – but there is a clear shift underway.

The recommendations await approval from the Florida Office of Insurance Regulation.

Reinsurers are also increasing their attention on per-risk contracts protecting Japanese interests abroad.

A trend for slightly riskier bonds has brought with it a rise in the absolute margin on offer.

Hamilton Re said early signs point to 25%-30% rate rises on Japanese wind.

This was the highest single-year increase for the US index since 2006.

This price hike contributed to a premium increase of $695mn in the month, bringing the year-to-date impact of 2022 rate increases to $3.6bn.

High-yielding alternatives are taking away attention from this sector, with its complex narrative around recent losses, and diversification only goes so far in selling its story.

Expansion is set to be a trend across Lloyd’s as syndicates look to capitalise on a hardening market.

Early reporters emphasised an ongoing demand for structural change.

Winter storms in the first half of 2022 are expected to result in claims totalling EUR1.4bn.

Reinsurers and brokers alike have warned of a rocky 1 January renewal process ahead as the industry grapples with multiple issues including inflation, climate change and geopolitical uncertainty.