Reinsurance rates - the prices insurers pay for their own insurance - will rise by as much as 50 percent in storm-prone coastal areas of the United States in 2007, according to chief executives of reinsurers.[...]
Three factors are keeping the supply of reinsurance tight: expectations for more frequent, stronger storms; population growth and higher reserves being demanded by rating agencies.
I think most folks in the know were expecting higher treaty costs for 1/1 renewals, since March- and July- reinsurance rates last year were higher.
However, I had hoped to see some stabilization in price. While 20% is less painful than many of the hikes seen for 2006 renewals…well, I suspect that it’ll add another log onto the fire in the Florida property insurance mess.