More moderate pricing trends were evident at the June 1, 2012 reinsurance renewals as the relatively light catastrophe loss activity during the first five months of the year contributed to positive reinsurer results and plentiful capacity, according to a briefing released today by Guy Carpenter.
Posts Tagged ‘Kevin Stokes’
The June 1, 2011, renewals took place against the backdrop of record first-half catastrophe losses and uncertainty surrounding the release of version 11 of Risk Management Solutions’ (RMS) U.S. hurricane model. The heavy international natural catastrophe-related losses that occurred during the first quarter of 2011 - combined with the multi-billion dollar losses from tornadoes in the United States in April and May - have added to significant loss activity over the past 16 months, culminating in insured losses of close to USD100 billion.
Catastrophe activity and two major catastrophe model revisions (RMS v11 this spring, which was preceded by AIR v12 last fall) led to a volatile renewal.
As U.S. property/casualty insurers begin to focus on their January 1, 2011 catastrophe renewals, they face a number of complex issues. The first challenge is effectively managing exposures in 2011 after an unexpectedly quiet hurricane season, in terms of losses. Following on the heels of the first six months of 2010, which saw significant losses from global catastrophes including higher levels of wind and hail losses in the midwestern United States, the Atlantic hurricane season was forecasted to be an active one.
Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and part of the Marsh & McLennan Companies (NYSE: MMC), today announced the formation of a dedicated Florida business unit. The Florida unit will be led by Kevin Stokes, Executive Vice President, who will report to Chris McKeown, President and CEO of North America Broking Operations.
Guy Carpenter Managing Director Kevin Stokes provides a forecast of events leading up to the July 1 renewals for property catastrophe reinsurance. The first quarter loss events will likely not have a major impact on pricing. He also reviews the 2010 Guy Carpenter storm forecast.
Florida property-catastrophe risk-adjusted pricing is expected to decline by about 15 percent on average at June 1, 2008 renewals. A competitive reinsurance market and the absence of major insured losses are driving this trend. While disasters are not in short supply, none has had a market-changing impact.