JLT Re's National Catastrophe Practice has reported that the 1 June 2015 Florida renewals saw risk-adjusted pricing shift down in the high single digits.
"On an overall basis the general trend was a downward pricing movement across company programmes. However, the level of price reductions varied significantly by layer of coverage,” said Bob Betz who, along with Brian O’Neill, leads JLT Re’s National Catastrophe Practice.
This was the fourth consecutive year of what O’Neill called “significant” risk-adjusted reinsurance rate decreases.
Since 2012, the JLT Re Rate on Line Analysis has indicated a continued downward trend, though this rate of decrease slowed in 2015.
"Interestingly, this is also the first year where companies took advantage of traditional open market reinsurance capacity and pricing and reduced their purchase from the Florida Hurricane Catastrophe Fund”, added Betz.
