Bermuda Reinsurers Report Storm Losses; New Convective Storm Model Released
What happened
Reinsurers in Bermuda have reported financial losses stemming from storm activity. Karen Clark & Co released Version 5.0 of its United States Severe Convective Storm Model, which includes refinements for severe tornado outbreaks and wind intensity along the Southeast coast. Severe convective storms, which include hail, tornadoes, and straight-line winds, have become a major source of insured losses for insurers and reinsurers in Bermuda.
From royalgazette.com
Why it matters
Severe convective storms featured in about one-quarter of catastrophe bond issuance since 2017, and global insured losses from these storms reached almost $200 billion between 2020 and 2024. Catastrophe bonds are commonly structured through Bermuda special-purpose insurers.
From royalgazette.com
Who's involved
- BermudaLocation where reinsurers are reporting losses and where cat bonds are structured
- RenaissanceReBermudian reinsurer whose risk assessment is improved by the updated model
- FloridaState in the United States whose perils are covered by the new risk model
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- AXIS CapitalSpeculative
AXIS Capital might benefit from improved accuracy in severe convective storm risk modeling for its core business.
- RenaissanceReSpeculative
RenaissanceRe could improve risk assessment, allowing better pricing and capital allocation.
- FloridaSpeculative
Florida might see Bermuda reinsurers price risk more accurately for Florida insurers.
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The entities involved
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Bermuda
British overseas territory in the North Atlantic Ocean
Related events
- Bermuda reinsurers support Florida insurers, and the Governor visited Bermuda to meet the reinsurance community.
- Bermuda hosts global reinsurance operations as they analyze risk from potential strikes affecting high-density areas like Miami-Dade County and Tampa Bay.
- Gazette reports on Bermuda's insurance market.
- Life insurers are moving their obligations to offshore jurisdictions, specifically mentioning Bermuda.
- A composite including reinsurers domiciled in Bermuda was noted, alongside comments on the outlook for US casualty lines.