Skip to main content

Re-insurance market July 1

Lloyds of London the worlds largest reinsurance market has just instituting new premium policy for catastrophic loss in the US.  reinsurance premium have risen by 50% starting July 1, 2023.

This is catastrophic for the US insurance market, because it means that large US insurance company are no longer able to offload part of the catastrophic loss risk that has grown exponentially over the past decade or so.

We have already seen an important shift with the disappearance of casualty insurance in California and Florida, because of either fire risk in California or flooding and hurricane risk in Florida.

The most interesting aspect of the US right view of global warming is it inability to understand how others will view it. The reinsurance market, cares little for US policy or politics. They are entirely driven by profits and right now in California and Florida the risk is no longer worth it, catastrophic losses in US insurance markets has made this market unappealing to the global market place for insurance 

It matters little what the GOP presidential nominee says about insurance and or the lack there of the reality is the market is cold in addition, did US has cut its only source of domestic pure, catastrophic coverage by the recent reduction in US federal expenditure. In fact, the GOP‘s own policies in Congress and the Senate have ensured that is more difficult now for Americans to obtain insurance because the lifeline of the government is no longer available

 There is no doubt that a doubling of premium for catastrophic insurance in the US has a massive impact on the US insurance industry. It’s unclear how insurance company will deal with the issue at this time. One thing they have done already is reduce in the most expose region to the risk of catastrophic losses that’s how the market reacts.

Comments

Post a Comment

Popular posts from this blog

Spray painting Taylor Swift G650 aircraft (updated)

 First, a bit of paint will not harm anyone.  These climate activities are going to learn two things in the next few days:  (1) Trespassing at an airport is a felony almost anywhere in the world.  That means criminal prosecution.   (2) removing paint from an aircraft is expensive.   So these climate activists are about to find out the reach of the British criminal system and it will not be pleasant, the UK has very strict laws about that, I would be surprised if cleaning the aircraft of all the paint will cost less than $100,000.     I am sure that when they planned (premeditation) this little show they had a very valid logic to doing this.  Tonight, they are probably realizing the depth of their troubles.   I understand that in the UK it's a minimum one-year jail sentence.    Also, good luck travelling with a criminal trespass charge against you.  I am relatively certain that the airline industry will ...
Post a Comment
Read more

Tariffs on inhabited Island

 Two seldom-visited islands, part of Australia, saw a massive increase in the tariffs they will face when exporting to the United States.   The 32,000 residents did not have much to say...being Penguines.   NO kidding, massive tariffs were imposed on Heard Island and McDonald Islands.  According to the Australian government, the last visitor to Heard was about a decade ago.   Never mind the 47% tariff on Madagascar, where the principal export is Vanilla and the GDP per capita is less than $500 a year. Not only a Stable Genus but evidently an administration that took all of two hours to proof the list of countries.    They also treated St Pierre & Miquelon, two islands part of France in the middle of the St Lawrence Gulf...
Post a Comment
Read more

Britain, France and Egypt

 The voters realize now that the Conservative Praty desire to return to 19th-century dominance has driven its hatred of the EU.  The voters realize now that departure from the EU has accelerated Britain's decline and may soon make it irrelevant.  At best it will have to kiss American arses to maintain its standing.  For this, the conservatives were punished.  The decline of Britain was inevitable, competition from Frankfurt and Germany in Finance was bound to grow.  The core of Europe (aka Germany) is aging quickly Macron seems to be winning his bet, the left alliance that won the legislative elections will not remain united for long, since they disagree on about everything.   The Far right though it was about to assume power is once again relegated to the back of the bus.   It may draw its own conclusions, but not all of these are good for France.  The far-right has won nearly 1/3rd of the electorate, that is not something to be ig...
Post a Comment
Read more