Most carriers are reporting positive 2023 year end results but rate increases continue

[Allen Trent]

Spike in Recent Ratings Downgrades Shows Challenges for US Insurers

Negative ratings actions and financial challenges are forcing carriers to explore reinsurance options offering needed capital, according to a report

www.insurancejournal.com

 

[Allen Trent]

the irony that most insurance carriers are experiencing record losses, AM best regulatory downgrades or outlook downgrades, but reinsurers are posting record profits...............................Sooooooo, guessing this means reinsurers have either rasied reinsurers premiums and/or raised carrier retention limits and/or ended reinsuring some carriers in some markets/areas of control and/or all of the above. Meaning carriers are holding more of the underlying risk on individual properties, more of the cat losses & paying more in expenses to purchase reinsurance if available. That is the only way I can dream up that the carriers are having record losses while reinsuers are posting record profits.

 

[m102269]

the irony that most insurance carriers are experiencing record losses, AM best regulatory downgrades or outlook downgrades, but reinsurers are posting record profits...............................Sooooooo, guessing this means reinsurers have either rasied reinsurers premiums and/or raised carrier retention limits and/or ended reinsuring some carriers in some markets/areas of control and/or all of the above. Meaning carriers are holding more of the underlying risk on individual properties, more of the cat losses & paying more in expenses to purchase reinsurance if available. That is the only way I can dream up that the carriers are having record losses while reinsuers are posting record profits.

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