Property reinsurance rates rose by as much as 50% in Florida at July 1 renewals and by up to 40% in the United States overall, reinsurance broker Gallagher Re said on Friday, as reinsurers grappled with higher inflation and natural catastrophe risk.
Some pricing in Florida was near “distress” levels for reinsurance buyers, Gallagher Re said in a report. (Editor’s note: The report is titled: Gallagher Re 1st View: Changing Environment 1 July 2022).
“The changing economic environment is starting to impact reinsurers’ balance sheets,” said James Kent, global chief executive of Gallagher Re.
“Reinsurers now appear to be more sensitive to losses and wider external events than at any time since 2008.”
(Reporting by Carolyn Cohn; editing by Jan Harvey)
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