Analysis

Social inflation is not just a Florida issue – it's also top of mind in the casualty market.

New issuances fell to the lowest level since 2011, amid an uptick in risk levels and US exposures, according to Trading Risk data.

Reinsurers pegged 2019 nat cat losses 23 percent lower than the 10-year average, but prior-year disasters created headlines.

Intermediaries called the renewal “asymmetric” and “divergent” as rates began to move up after a pressured few years.

The main disrupted segments are still aggregate retro and sidecar vehicles, where negotiations over the level of trapped capital have held up the renewal process.

Willis Towers Watson has tipped that greater focus will be drawn to ILS domiciles and structures in 2020 amid an “unusual amount of innovation” from existing and emerging jurisdictions.

There is a growing confidence that the storm will remain below the $10bn.

Cat specialists RenaissanceRe and Everest Re took the highest proportional hit to equity from the Q3 disaster losses, which resulted in an average cost equivalent to 1.7 percent of shareholders’ equity.