Insurance carriers were met with the most challenging Jan. 1 reinsurance renewals that they had seen in decades — if ever. Rising costs and inflation among other economic factors, pushed claims higher. As insurers absorb significantly higher reinsurance costs and grapple with inflation, they are placing a greater emphasis on insurance to value. While they need to get rate, executives who took part in the panel discussion at the SouthCoast Insurance Agents Association’s annual meeting assured attendees that the marketplace in New England remains competitive and strong.
Insurers’ reinsurance purchases are spread among multiple companies from around the world to mitigate the risk of catastrophic loss events. In the last several years, reinsurers have accumulated losses from primary carriers, and in turn, have increased prices, limited coverage and in some cases exited markets to improve returns.
Read the full article Here.