A Gallagher Re revealed that reinsurance rates for properties in the U.S. increased as much as 50% on July 1. States like California and Florida which are hit by wildfires and hurricanes saw a remarkable increase in reinsurance rates. In the past few years, reinsurance companies have raised their rates because of increasing losses. Industry experts have attributed the increase in losses to the impact of climate change. - Reinsurers insure insurance companies, and an increase in their rates could lead to a rise in premiums that insurers charge their customers.
- According to Gallagher Re, reinsurance rates increased by 30%-50% for policies that previously experienced claims due to natural calamities.
- Chairman International of reinsurance at Gallagher Re, James Vickers, said all major carriers are leaving Florida, leaving a large number of very small, very thinly capitalized insurers, which is an undesirable outcome.
|
