Disasters Drive 2020 Re Rates
Fitch, Moody’s, and S&P Global say large insurance losses from hurricanes, wildfires, and other natural disasters over the past two years are set to push reinsurance renewal rates higher in January. Reinsurance rates have fallen for several years due to competition and fewer natural disasters, but renewal rates have started climbing the past couple of years. Rates for 2020 are set to rise on average by as much as 5 percent, but damages from Hurricane Dorian could see rates jump much higher.
Insurers are increasingly concerned about the impact of bad weather linked to climate change, with an increase in wildfires in California among the most costly in recent years, something S&P said could see rates there jump 30 percent to 70 percent. Moody’s analysts said lines of business that have been performing badly over the last few years due to losses related to hurricanes in the United States would see price rises in the mid-teens.