Catastrophe bonds

Total cat bond lite issuance this year has reached $370mn, according to Trading Risk’s tracker

Gallagher Re has stated that the alternative capital market has increased by 4%.

However, most P&C insurers will still miss their cost of capital targets and as a result, rate hardening and capacity constraints are expected to continue into 2024, according to Swiss Re.

Morrison spent four years as an underwriter at Securis before moving to Aeolus in 2018.

The firm joins other challenger brokers in tackling the stronghold of the cat-bond broking space.

The pressure on catastrophe terms and conditions seen at the January 2023 renewals will likely not be repeated as renewals get more orderly in 2024.

Reinsurance underwriting discipline will not subside even as reinsurers’ willingness to deploy capital increases, the broker said.

The ratings agency has said ILS firms could encounter “pent-up demand” from cedants during the January 2024 renewal.

The broker’s half-year 2023 report said reinsurers’ RoE has surpassed the cost of capital for second year running.

Buyers expect rates to climb by 2.5% to 15%, continuing year-on-year hikes since 2017.

The ratings agency’s survey found that a trend of rising claims is expected to continue, but reinsurance demand is likely to flatten, mostly because of high costs.

The Florida hurricane season still has three months to run in a predicted above-average year.