Catastrophe Risks

As evidenced by European reinsurers' 2017 results, the sector remains resilient to catastrophe losses, said Fitch Ratings. While it took some rate increases for January and April renewals, Fitch reports that with capital typically above companies' target levels, material premium rate rises are not expected in 2018. Read More

According to the latest Swiss Re Institute sigma study, total global economic losses from natural disasters and man-made catastrophes in 2017 were $337 billion. Of the total losses, global insured disaster losses were $144 billion, leaving a worldwide catastrophe protection gap of $193 billion. Read More

The Federal Emergency Management Agency is seeking to secure additional reinsurance for the National Flood Insurance Program through a mid-year placement engaging the capital markets. This will continue to expand the role of the private markets in managing the nation's flood risk. Read More

Climate change creates significant challenges for the property and casualty (P&C) insurance and reinsurance sectors and has a net negative credit impact on the industry, according to Moody's Investors Service. To a lesser degree, climate change also presents opportunities for firms to introduce new products and expand existing products. Read More

Seven days after Cyclone Gita ravaged Tonga, its government received a $3.5 million insurance payout from the Pacific Catastrophe Risk Insurance Company (PCRIC), according to the World Bank. PCRIC is a captive insurance company whose parametric insurance policies are designed to payout within 10 days of a triggered event. Read More