Private Capital News
The largest reinsurance broker in the world, Aon, has released a report on conditions in the reinsurance markets for renewals at the beginning of the year. It said that this was most challenging renewal in a generation, with a fundamental shift in risk appetite and pricing from reinsurers, most especially but not exclusively in property catastrophe reinsurance. Pricing for US catastrophe business hit levels not seen in decades. This ran alongside a narrowing of coverage definition and an increase in the number of exclusions.
Since late December the state of California has experienced fierce storms, torrential rain, high winds and flooding. Thousands of people have been evacuated from their homes, more than half a million homes have been without power and at there have been at least nineteen deaths. Additional rain on already saturated ground is creating further flood potential, with rapidly rising rivers, mudslides and flash floods. Economic losses have been estimated to exceed US$30 billion.