W. R. Berkley Corporation’s Post

Insurance Tips: Increased Property Rates and Reinsurance We are talking about reinsurance as part of property insurance. Reinsurance is a complicated aspect of property insurance. Andy explains why it seems that increased property rates / insurance are occurring now more than ever.

Spent sometime this earlier this week discussing property insurance market trends with our friends at Capstone Companies & Austin Smith. We are seeing the market trending in the right direction and it all starts with record capital drawn into reinsurance. More on that below or reach out for additional insights.

Reinsurance and fronting arrangements are key elements in all captive insurance programs; however, they also come with their unique set of challenges. READ MORE 

James River Insurance Company Announces Legacy #Reinsurance Agreement with State National Companies (SNC) Insurance Company. Under the terms of the agreement, State National will provide $160.0 million of adverse development reinsurance coverage for James River’s Excess and Surplus Lines segment casualty portfolio for accident years 2010-2023 (both years inclusive), subject to a 15% co-participation by the Company. The reinsurance structure has no coverage sublimits but does exclude exposure to the Company’s former large commercial auto insured, with the vast majority of that exposure already subject to a previously executed loss portfolio transfer. James River will retain claims management. State National is rated “A” (Excellent) by AM Best. Frank D'Orazio, the Company’s Chief Executive Officer, commented, “We are pleased to have successfully completed a significant legacy reinsurance transaction with a highly rated carrier that is consistent with the Company's track record of de-risking the organization while bolstering the balance sheet and providing improved certainty to our stakeholders.” https://lnkd.in/eXSq3nfp

With Q4 an important time for the property insurance market, not least as the peak reinsurance renewal approaches, Aon has made considering catastrophe bonds the top recommendation for insurers looking to navigate what can be a challenging time.

Insurance companies buy insurance too! This year, the amount of reinsurance purchased has significantly increased. The surge in property value, coupled with carriers requiring additional reinsurance to mitigate claim payouts from catastrophic events, has driven this growth. #Insurance #Reinsurance #RiskManagement #weworryyoulive

An improving property insurance market is often characterized by several key signs, including strategies to attract new insurance capital, effective reinsurance practices, and developments related to entities like the Citizens Property Insurance Corporation. Call me with your homeowner insurance questions I will connect you with my seasoned homeowner's insurance referral partners. Here are five significant indicators that reflect a positive shift in the property insurance landscape.

Join us for an introductory course on commercial property insurance! Over the next few days, we'll cover the basics of property insurance and reinsurance. Stay tuned for more information. #insurance #commercialproperty #reinsurance

How Reinsurance Protects Insurance Companies Think of it as risk transfer for insurance companies. They cede a portion of their risk to other companies called reinsurers, who agree to share the burden of large claims, protecting the original insurer from financial strain. Reinsurance agreements come in two main categories: Treaties: These are formal, pre-arranged agreements outlining the specific risks covered, the percentage each party shares, and other terms. They can be further categorized as: Proportional: Both companies share premiums and losses based on a predetermined percentage. Common types include quota share (sharing all risks within a specific class) and surplus share (reinsurer covers losses exceeding a certain amount retained by the ceding company). Non-proportional: The reinsurer only pays for losses exceeding a specific amount, called the retention limit. The ceding company keeps all premiums and bears losses up to the retention limit. Common types include excess of loss (XoL) (reinsurer covers losses exceeding a specific limit per risk) and stop loss (reinsurer covers losses exceeding a cumulative amount for a defined period). Facultative: This involves a one-time, individual agreement for a specific risk, negotiated each time a policy is issued. It's suitable for high-value or unusual risks that don't fit within a treaty. Here's a simplified example: Imagine your insurer offers property coverage in a hurricane-prone region. A single storm could exhaust their capital if they have to cover all the damages alone. Enter reinsurance! The insurer enters into a treaty with a reinsurer, agreeing to cede a portion of the risk for all property policies in that region. Alternatively, they might use facultative reinsurance for a particularly large and expensive property in the same area. Here are some benefits of reinsurance for insurance companies: Enhanced financial stability: Protects against catastrophic losses. Increased capacity: Allows them to underwrite larger policies and take on more risk. Improved diversification: Spreads risk across different lines of business and geographical regions. So, the next time you pay your insurance premium, remember – there's a network of companies working behind the scenes to ensure everyone gets the protection they need, even in the face of unforeseen events. #reinsurance #insurance #riskmanagement #financialliteracy #catastrophe

Check out the latest Fidelis Insurance Group fact sheet to learn more about our strategy of building a high quality, diversified specialty insurance portfolio, focused on three core pillars: Specialty, Bespoke, and Reinsurance #FidelisInsurance