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Further reinsurance pricing-power increases expected at mid-year FL renewals

May 24, 2023

Analysts at BMO Capital Markets anticipate +30-40% reinsurance pricing-power increases at the mid-year Florida renewals, compared to reinsurance pricing of +28-38% at Jan 1.

According to BMO’s analysts, Terms & Conditions remain “as tight as can be”, meaning reinsurers will be “on the hook” for meaningfully less market share of overall catastrophe losses in 2023 compared to prior years.

Some of BMO’s examples include higher deductibles, as well as only specific named storms versus all hurricanes, shorter timeframes for claim notifications, and deeper modelling/harder looks at property replacement cost inflation assumptions.

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