With the Florida reinsurance renewals fast approaching, it’s interesting to learn that indicative pricing for industry-loss warranty (ILW) protection covering hurricanes affecting the state is up significantly year-on-year, but actual market pricing may be flat or even down. Please read our update at the foot of this article.

The market for typically retrocessional reinsurance protection structured in industry loss warranty (ILW) form has been one of the areas that saw a contraction of available capacity and then hardening over the last few years, but the hardening actually seems to have been more significant through the second half of 2020 and into 2021 than it had been after the loss heavy Florida hurricane year’s of 2017 and 2018.

The ILW market has been cited as one area of reinsurance where attractive return opportunities exist this year and broker pricing sheets seen by Artemis suggest those looking to back ILW’s with their capital are likely to secure better rates than a year ago.

FULL ORIGINAL PUBLICATION HERE

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