The wildfires that have ravaged affluent parts of California’s wine region are expected to take a toll on carriers writing high net worth (HNW) and winery business.
An escalating loss adjuster shortage following the wave of recent catastrophes is further inflating claims costs and adding to post-event loss amplification.
The reaction of investors in cat funds that write retro will play a major part in determining the extent of rate hardening for both reinsurers and insurers at 1 January.
After years of deteriorating underwriting conditions in US casualty reinsurance, there is cautious optimism among reinsurers that predicted post-loss hardening in property lines will instigate a slow turn in third party business.
As reinsurers continue to put out provisional loss estimates for Q3 cats, there is a growing recognition that 1 January will bring about a hardening in the US property treaty sector that could spread to other lines.
