Reinsurers are showing a diverging appetite for Florida property catastrophe risk, says Moody’s, ahead of further anticipated price increases and coverage constraints going into 2023.
The rating agency noted that many reinsurers chose to hold steady or cut their Florida exposures during the June 2022 renewals, in an effort to improve over-the-cycle returns and reduce earnings volatility from natural catastrophes.
And this was despite double-digit rate increases, tightening terms and conditions, and recent legislative changes aimed at tackling Florida’s unfavorable claims litigation environment.
