Catastrophe Risks
LA Wildfires Could Consume 30 Percent of European Reinsurers' 2025 Budgets
Fitch Ratings projects Los Angeles wildfires may consume 30 percent of European reinsurers' 2025 catastrophe budgets, with insured losses estimated at $25–$45 billion. Despite financial strain, reinsurers' strong capital positions and diversified risks minimize material impact. Fitch expects tempered rate declines with significant increases limited to high-risk regions like California. Learn More
FEMA Expands Reinsurance Program To Manage 2025 Flood Risk
The Federal Emergency Management Agency (FEMA) transfers $757.835 million in flood risk to private reinsurers, expanding coverage with 27 companies. Total National Flood Insurance Program risk transfer now reaches $2.058 billion. Learn More
Natural Disasters in 2024: A Loss-Heavy Year for the Insurance Market
Munich Re reports $140 billion in insured losses from 2024 natural disasters, including hurricanes Helene and Milton. Rising losses underscore climate change's impact. Read More
2024 Insured Natural Catastrophes Losses Expected To Top $135 Billion
For the fifth consecutive year, insured losses resulting from natural catastrophes have exceeded $100 billion, according to the Swiss Re Institute. Losses in the United States represent at least two-thirds of this year's global insured losses of more than $135 billion as of current estimates. Read More
2024 Atlantic Hurricane Season Sees Predicted High Level of Activity
The 2024 Atlantic hurricane season ended November 30 with a high level of activity that fell within the predicted range, according to the US National Oceanic and Atmospheric Administration (NOAA). The Atlantic basin saw 18 named storms in 2024, 11 of which were hurricanes with 5 intensifying to major hurricanes. Read More
Exploring Parametric Innovations in the Captive Market: Insights from the Bermuda Captive Conference
In a Bermuda Captive Conference presentation, Greg Fears of Pinnacle Actuarial highlighted parametric insurance's role in the captive market. By using predefined triggers, captives can provide faster payouts, address unique risks, and bridge protection gaps in traditional insurance, benefiting sectors with diverse needs, from agriculture to pandemic-related business interruption. Read More
Temporary NFIP Extension Provides Short-Term Relief during Hurricane Season
With a temporary National Flood Insurance Program (NFIP) extension granted during hurricane season, AM Best highlights the need for private insurers to assume more flood risk for a sustainable flood insurance market, as private market growth has stagnated and NFIP debt continues to rise amid increasingly severe weather events. Read More