Hurricane season not costly enough to raise premiums

Hiscox CEO Bronek Masojada says this years’ US hurricane season must cost insurers $30bn to force up prices so he expects the market to soften further, Reuters reports.

"Our view is that in the scenario of no hurricane or even a mid-sized hurricane, we would expect the trend to continue to be down," Masojada said. "It would have to be a really material hurricane to change that, I would have thought Ike plus 50%, so probably $30bn."

Regulation concerns

On regulation, Masojada said: "We now understand that the insurance companies will be regulated as second class citizens to the banks by the Bank of England.

“Our concern is that the Bank will focus on what's the right solution for banks, and assume that the same will work for insurance companies."