Hannover Re looks for 40-50% cat rate increases in Florida

Hannover Re is expecting significant property/casualty (P&C) rate increases, particularly in the regions affected by recent hurricanes in North America, but also elsewhere in the upcoming renewals.

Overall, Hannover Re’s aim is to bring P&C rate levels back to the 2015 levels, Hannover Re CEO Ulrich Wallin said during an Oct. 19 investors’ day in Frankfurt.

“On some businesses, this would mean significant increases. Florida cat will probably need increases of 40 percent to 50 percent,” Wallin said.

On other businesses, the increases can be a lot more modest, Wallin noted, because there the rates hadn’t fallen as much in recent years. This applies for example to the casualty business in continental Europe or in the US, he explained. In these markets, Hannover Re “would probably look for rate increases around the 5 percent level,” he noted.

Cedants are likely to agree to price increases because they are striving for rate increases themselves, Wallin said. “There is a change in sentiment both on the insurance and the reinsurance side towards rate increases,” he said.

Get the latest re/insurance news sent to your inbox every day -  Sign up to our free email newsletters

Other stories from this morning's newsletter

Swiss Re faces $3.6bn nat cat losses in Q3

ILS investors prepare for reloading

Sompo reviews FY earnings forecast after nat cat hit

Neon launches marine joint venture in Italy

Aon Benfield names EMEA & UK head of client services

California wildfire claims losses reach $1bn

Manchester Underwriting appoints Munich Re exec as claims manager

Don't miss our insurtech email newsletter - sign up today