Claims and losses

The broker said the risk from wildfire is also set to increase substantially.

The National Hurricane Centre said the Lesser Antilles, Puerto Rico and the Virgin Islands must be vigilant.

Compelling rates are on offer for markets willing to write wildfire risk in the sunshine state.

The comment comes after major US carriers pulled back from new business in wildfire-prone California.

The carrier said 70% of the claims stemmed from two wind and hail events.

The carrier is increasing underlying rates to counter increased reinsurance costs and inflation.

ACIC’s program offers sufficient coverage for approximately a one-in-167-year event and a one-in-100-year event followed by a one-in-50-year event in the same season, the company said.

The cat bond will cover earthquakes in California, Utah, Oregon, Nevada and Arizona, as well as areas of Mexico and Pacific offshore locations.

Most forecasters predict below-average activity in the region – but opposing weather phenomena mean uncertainty is higher than usual.

The bills place additional requirements on insurers in the state and expand consumer protections.

In its update, CSU now anticipates 14 named storms, seven hurricanes and three major hurricanes.

Some cedants paid more than 40% increases depending on Florida concentration and Hurricane Ian losses.