Reinsurance rates push insurance up as much as 100%
A severe storm season could damage the Gulf of Mexico energy industry, according to Guy Carpenter, as producers have been left with less insurance cover, the FT reports
Resons given include:
- State-run reinsurer Florida Hurricane Catastrophe Fund cut $2bn support for insurers
- Traditional reinsurance capacity fell by 10% for the 1 June Hurricane season
- Capacity from hedge funds dropped by about one-third
Lara Mowery, head of global property specialty at Guy Carpenter, said property insurers were squeezed as primary insurance rate increases were restricted by local regulators.
Primary insurance capacity is down 30% - 40% and companies prices have risen 20% -100%.
