Insurers writing in areas flooded by storm waters last August and September feared drought-like coverage conditions this June and July, as reinsurance capacity started drying up in catastrophe-prone regions months ahead of midyear renewal dates. While property-catastrophe reinsurance capacity wasn’t completely depleted, it took many more trips to the pump to fill cat reinsurance tanks enlarged by a new appreciation of exposures, U.S. market experts say.

“You used to be able to get $25-to-$50 million of catastrophe capacity [from one reinsurer],” according to Rod Thaler, executive vice president and national director of Willis Re in New York. “Today, it’s tough to get $5 million,” he said, referring specifically to capacity available from each of the new “Class of 2005″ reinsurers in Bermuda.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.