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☆ Who ends up holding the bag for the Baltimore bridge collapse?
▼ + stars: | 2024-03-28 | by ( Catherine Thorbecke | Nathaniel Meyersohn | ) edition.cnn.com time to read: +7 min

Marine insurance companies will be on the hook for much of the costs. These insurance companies are backed by insurance companies of their own – a type of business known as a reinsurer. The potential cost of insurance claims from the bridge collapse could be between $1 billion and $3 billion, analysts at Barclays wrote in a note Wednesday. “But other than that, the economic impact of what has happened will be enormous, but not recoverable from the ship,” Davies said. Maryland lawmakers, meanwhile, are drafting an emergency bill to provide income replacement for Port of Baltimore workers impacted by the bridge collapse.

Persons: Baltimore’s Francis Scott Key, ”, John Miklus, Dali, Brendan Holmes, Miklus, Loretta Worters, Worters, Martin Davies, ” Davies, Joe Biden, Francis Scott Key, it’s, ” Biden, Scott Olson, Davies, Bill Ferguson Organizations: New, New York CNN, American Institute of Marine Underwriters, “, Barclays, Grace Ocean, Britannia, Indemnity, International Group, International, CNN, Insurance, Costa, Maritime Law Center, Tulane University, “ Maersk, Federal Highway Administration, Infrastructure Investment, Jobs, Biden, . Workers, Robins, Repair, Port, Maryland Locations: New York, Singapore, Costa Concordia, Italy, Danish, Baltimore , Maryland, Maryland, Baltimore

☆ A complex and clubby group in London could face billions in claims from the Baltimore bridge collapse
▼ + stars: | 2024-03-27 | by ( Dominick Reuter | ) www.businessinsider.com time to read: +4 min

download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. With the crash of the container ship Dali into the Francis Scott Key Bridge in Baltimore on Tuesday, insurance underwriters are duly updating those books as a picture emerges of the true cost of damages. Economists told Business Insider the port closure itself will cost $15 million per day in lost economic activity, with other disruptions pushing the total into the tens of millions per day. All told, Barclays said insurance companies could be looking at claims as high as $3 billion as a result of the crash, Bloomberg reported. AdvertisementStill, the collapse of the Key Bridge could lead to "one of the largest claims ever to hit the marine (re)insurance market," John Miklus, president of the American Institute of Marine Underwriters, told Insurance Business.

Persons: —, Dali, Francis Scott Key, Morningstar, Marcos Alvarez, Edward Lloyd, doesn't, Lloyd's, John Miklus Organizations: Service, Business, Barclays, Bloomberg, Port, Reuters, Lloyd's, American Institute of Marine Underwriters, Insurance Business Locations: London, Baltimore, Port of Baltimore, Britannia

☆ The marine insurance industry is bracing for huge claims from the Baltimore bridge disaster
▼ + stars: | 2024-03-27 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Huge insurance claims are expected after the Dali collided with a major bridge on Tuesday. The claims could be on par with the $1.5 billion from the Costa Concordia disaster, an expert told Insurance Business. AdvertisementThe marine insurance industry is bracing for huge claims from Tuesday's Baltimore bridge disaster. AdvertisementThe marine insurance and reinsurance markets are likely to foot most of the bills, S&P Global reported on Tuesday. The Baltimore bridge itself is insured by insurance giant Chubb, per Insurance Insider.

Persons: Dali, —, Francis Scott Key, John Miklus, Miklus, Costa Concordia's, You've, Cintia Nazima, Chubb, SCOR Organizations: Business, Insurance, Service, American Institute of Marine Underwriters, Costa Concordia, Maryland Transportation Authority, Wall, P Global, Britannia Locations: Costa Concordia, Tuesday's Baltimore, Costa, Italy, Baltimore, Dali's Baltimore, Britannia, London, Suez

☆ A historic and clubby group in London could face billions in claims from the Baltimore bridge collapse
▼ + stars: | 2024-03-27 | by ( Dominick Reuter | ) www.businessinsider.com time to read: +4 min

Claims from the container ship Dali's crash into Baltimore's Key Bridge could cost insurers a lot. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . With the crash of the container ship Dali into the Francis Scott Key Bridge in Baltimore on Tuesday, insurance underwriters are updating those books as a picture of the true cost of damages emerges. Economists told Business Insider the port closure itself will cost $15 million a day in lost economic activity, with other disruptions pushing the total into the tens of millions a day. AdvertisementStill, the collapse of the Key Bridge could lead to "one of the largest claims ever to hit the marine (re)insurance market," John Miklus, the president of the American Institute of Marine Underwriters, told Insurance Business.

Persons: —, Dali, Francis Scott Key, Marcos Álvarez, Edward, doesn't, Lloyd's, John Miklus Organizations: Service, Barclays, Bloomberg, Port, Reuters, Lloyd's, American Institute of Marine Underwriters, Insurance Business Locations: London, Baltimore, Port of Baltimore, Britannia

☆ People Have a Right to Climate Data - The New York Times
▼ + stars: | 2024-01-20 | by ( Justin S. Mankin | ) www.nytimes.com time to read: +1 min

As a climate scientist documenting the multi-trillion-dollar price tag of the climate disasters shocking economies and destroying lives, I sometimes field requests from strategic consultants, financial investment analysts and reinsurers looking for climate data, analysis and computer code. These requests make sense: People and companies want to adapt to the climate risks they face from global warming. Venture capitalists are injecting hundreds of millions of dollars into climate intelligence as they build out a rapidly growing business of climate analytics — the data, risk models, tailored analyses and insights people and institutions need to understand and respond to climate risks. I point companies to our freely available data and code at the Dartmouth Climate Modeling and Impacts Group, which I run, but turn down additional requests for customized assessments. I regard climate information as a public good and fear contributing to a world in which information about the unfolding risks of droughts, floods, wildfires, extreme heat and rising seas are hidden behind paywalls.

Persons: El Organizations: BlackRock, Venture, Dartmouth, Modeling

Helping these countries, which face some of the biggest risks from climate change, access these will be a key aim during the COP28 climate talks underway in Dubai. Ambitions for results at COP28 got off to a good start on the opening day on Thursday when countries approved plans for the climate disaster fund, after months of negotiations. About 60% of low-income countries are either in or at high risk of debt distress, the CDP said. The Central Asia Regional Economic Cooperation Program, for example, aims to agree a disaster relief bond issuance and a regional risk transfer facility, the ADB's Principal Disaster Risk Insurance and Finance Specialist, Thomas Kessler, told Reuters. "We are ready to scale up climate protection through early warning systems, anticipatory cash, climate insurance and community-based resilience projects," said Gernot Laganda, director of Climate and Disaster Risk Reduction at the United Nations World Food Programme.

Persons: COP28, Ekhosuehi Iyahen, IDF's Iyahen, Michèle Plichta, Lydia Poole, Odile Renaud, Basso, Thomas Kessler, Otis, Gernot Laganda, Alessandro Parodi, Simon Jessop, Libby George, Karin Strohecker, Susan Fenton Organizations: Insurance, Forum, PAF, Disaster, European Bank for Reconstruction, Global, Swiss, Central Asia Regional Economic Cooperation, Finance, Reuters, UN, University of Cambridge's Institute for Sustainability Leadership, United Nations, Food, Thomson Locations: GDANSK, LONDON, Dubai, London, Mexico

☆ UK pension transfer boom continues as deals worth $11 bln struck
▼ + stars: | 2023-11-24 | by ( Lawrence White | ) www.reuters.com time to read: +2 min

The logo of Legal & General insurance company is seen at their office in central London March 17, 2008. Legal & General (LGEN.L) said it had agreed a so-called full buy-in to the Boots Pension Scheme worth 4.8 billion pounds, in what it said was the largest such deal in Britain by premium size. The market has been running at around 30 billion pounds a year in Britain, but consultants expect 2023 to top that. Rising funding ratios for pension schemes are driving unprecedented demand, Legal & General (L&G) said, as funds scramble to protect schemes against the vagaries of market movements amid rising interest rates worldwide. L&G has written a total of 13.4 billion pounds worth of pension risk transfer deals this year globally, up from 9.5 billion pounds last year.

Persons: Alessia, Eva Mathews, Lawrence White, Sharon Singleton, Mark Potter Organizations: General, REUTERS, Legal, Co, Regulators, Bank of England's Prudential, Authority, Health, Thomson Locations: London, BRITAIN, Britain, Rothesay, Bengaluru

☆ Insuring your home in Colorado can cost $40,000 as the climate crisis wreaks havoc on the market, one insurance CEO said
▼ + stars: | 2023-10-05 | by ( Dan Latu | ) www.businessinsider.com time to read: +4 min

AdvertisementAdvertisementThis as-told-to essay is based on a conversation with Oscar Seikaly, CEO at NSI Insurance Group, which is based in Florida but underwrites policies nationally, about skyrocketing insurance premiums and how unpredictable disasters around the country raise prices for everyone. Over the past 10 years, insurance premiums have changed dramatically. AdvertisementAdvertisementTake the average house in Aspen: You have $5 million for the house, $3 million for the contents, another $2 million for loss of rents. All these insurance companies have to buy from reinsurance companies and there's only three or four main ones in the world. When you buy a $5 million house or a $10 million house, paying $30,000 or $20,000 a year is not going to make a difference.

Persons: Oscar Seikaly, Seikaly, —, that's Organizations: Service, NSI Insurance Locations: Aspen, Florida, California, Colorado, Northern California

☆ How insurance companies are battered by hurricane season and climate change
▼ + stars: | 2023-09-24 | by ( Yun Li | ) www.cnbc.com time to read: +3 min

Insurance companies are in a tough spot with this year's stronger-than-average hurricane season, while climate-related perils continue to push catastrophe losses higher. Adding fuel to the industry's woes is the higher frequency of secondary perils, such as wildfires and flooding, due to climate change. These increased occurrences have been slowly adding to primary insurers' catastrophe losses and limiting profitability. While the industry is currently in the middle of peak hurricane season, insurance stocks typically rebound when the size of the insured losses become apparent or are announced by the companies, according to Piper Sandler. Insurance stocks tend to fall initially as big hurricanes near landfall and the likely extent of damage is appraised.

Persons: Piper Sandler, Paul Newsome, Newsome, Chubb, Bob Huang, Morgan Stanley, Huang Organizations: Atlantic, . Insurance, Insurance, Allstate, American International Group, Progressive, Universal Insurance Holdings, Everest Re Locations: Florida, Maui, Hawaii, California

The U.S. homeowner’s insurance industry has had three straight years of underwriting losses, according to credit rating agency AM Best. Record numbers of Americans are now insured through state-affiliated “insurers of last resort” like California’s FAIR Plan, or Louisiana or Florida’s Citizens property insurance companies. These programs were designed to insure properties where private insurance companies have refused to insure or the price for private insurance is too expensive. In Florida, Citizens Property Insurance Corp. now has 1.4 million homeowners’ policies in effect, nearly triple in five years. “It used to be homeowner's insurance was an afterthought when you are looking at buying a property.

Persons: you’re, ”, California Sen, Bill Dodd, Jeremy Porter, Fannie Mae, Todd Bevington, “ I’ve, Jen Goodlin, ‘, ’ ”, “ We’ve, ” Dodd, Dodd, Porter, Guy Carpenter, Lara Mowery, Mowery, ” Mowery, That’s, ” Bevington, Adam Beam, Janie Har Organizations: First Street Foundation, Bank of America, Treasury Department, Paradise, FAIR, Citizens Property Insurance Corp, Farm, Allstate, National Flood Insurance, Swiss, Munich Re, Hurricane Locations: California, Florida, Louisiana, Lahaina, Vermont, Maine, New York, U.S, “, Paradise, Northern California, Colorado, Munich, New Orleans, Gulf, Asheland, N.C, Sacramento, Calif, San Francisco

☆ Lloyd's of London swings to first-half profit
▼ + stars: | 2023-09-07 | by ( ) www.reuters.com time to read: +1 min

The interior of the Lloyd's of London building is seen in the City of London financial district in London, Britain, April 16, 2019. REUTERS/Hannah McKay//File Photo Acquire Licensing RightsLONDON, Sept 7 (Reuters) - Lloyd's of London (SOLYD.UL) swung to a first-half pre-tax profit of 3.9 billion pounds ($4.88 billion), helped by rises in premium rates and positive investment returns, the commercial insurance market said on Thursday. Lloyd's recorded a loss of 1.8 billion pounds for the same period a year ago. The COVID-19 pandemic, Ukraine war, inflation and climate change-fuelled natural catastrophes have helped insurers and reinsurers to raise premiums, improving their profits. Lloyd's saw a net investment return of 1.8 billion pounds, compared with a loss of 3.1 billion pounds a year earlier.

Persons: Hannah McKay, Lloyd's, ”, John Neal, Carolyn Cohn, Sharon Singleton Organizations: REUTERS, Global, Thomson Locations: London, City, Britain, Ukraine

☆ Lessor AerCap agrees settlement over Aeroflot jets stranded in Russia
▼ + stars: | 2023-09-06 | by ( Conor Humphries | ) www.reuters.com time to read: +4 min

Before last year's invasion of Ukraine, Russia was a major market for aircraft lessors, which bought jets from Boeing (BA.N) and Airbus (AIR.PA) and leased them to Russian airlines. Aeroflot said in a statement that ownership of 18 aircraft and five engines had transferred to NSK following settlement with AerCap. AerCap filed a $3.5 billion London lawsuit last year against AIG and Lloyd's over 141 aircraft and 29 aircraft engines it owned that were on lease to Russian airlines. AerCap said settlement discussions were ongoing with respect to claims under the insurance policies of several other Russian airlines. AerCap in March said it had been approached by Russian airlines and their insurance companies about possible settlements for the stranded planes.

Persons: BOE, Denis Balibouse, AerCap, lessors, Conor Humphries, Gleb Stolyarov, Kirstin Ridley, Jason Neely, David Evans, Peter Graff Organizations: Airbus, Russian, Aeroflot, REUTERS, DUBLIN, NSK, Rossiya, Boeing, U.S . Treasury, Commerce, AIG, SMBC Aviation, Reuters, Thomson Locations: Geneva, Switzerland, Russia, Ukraine, Ireland, Moscow, NSK, AerCap, EU

☆ S&P Global raises reinsurance sector view to stable from negative on higher prices
▼ + stars: | 2023-09-05 | by ( Carolyn Cohn | ) www.reuters.com time to read: +2 min

The S&P Global logo is displayed on its offices in the financial district in New York City, U.S., December 13, 2018. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsLONDON, Sept 5 (Reuters) - S&P Global has raised its view of the global reinsurance sector to stable from negative, it said on Tuesday, due to higher reinsurance rates and increasing investment income, while rival Moody's kept its outlook for the sector stable. The COVID-19 pandemic, war, inflation and climate change-fuelled natural catastrophes have put upward pressure on reinsurance rates in recent years. S&P Global said this "resulted in the hardest market in decades" in some lines of business. "Challenges such as elevated natural disasters, increasing cost of capital, financial market volatility, and inflation risk persist," S&P Global added.

Persons: Brendan McDermid, Moody's, Gallagher Re, reinsurers, Laline Carvalho, Neff, Re, Carolyn Cohn, Jason Neely, Alex Richardson, Sharon Singleton Organizations: REUTERS, Global, P Global, P, reinsurer, Thomson Locations: New York City, U.S, California, Florida, Monte Carlo

CEDAR KEY, Fla. — As cleanup begins in the aftermath of Hurricane Idalia, the storm has served as a stark reminder that Florida's insurance industry remains in flux. But many of those homeowners face uncertainty amid the upheaval that has emerged in Florida's insurance industry in recent years. A thinning insurance market that is beset by more regular hurricanes has caused insurance policy costs to skyrocket. The state's insurance industry is preparing to lose four insurers since last year — Farmers Insurance, Bankers Insurance, Centauri Insurance and Lexington Insurance. Aggravating the problem, 82% of Floridians do not have flood insurance, which is typically operated by the National Flood Insurance Program, a federal program run by the Federal Emergency Management Agency.

Persons: Idalia, Chris Draghi, That's, Gregory Buck, Buck, Aimee Firestine, Firestine, Amy Bach, United, Bach, Mark Friedlander, Friedlander, Gabe Gutierrez, Phil McCausland, Melissa Chan Organizations: Insurance Information Institute, U.S, — Farmers Insurance, Bankers Insurance, Centauri Insurance, Lexington Insurance . Farmers Insurance, National, Experts Insurance, Homeowners, Insurance, Property Insurance Corp, National Flood Insurance, Federal Emergency Management Agency, Congress, First Street Foundation, FEMA, Cedar Key Locations: Fla, Florida's Big Bend, Florida, Georgia, Florida , Georgia, South Carolina, Cedar, America, Taylor County, Bend, New York City

A view of a damaged house after the arrival of Hurricane Idalia, in Cedar Key, Florida, U.S., August 31, 2023. REUTERS/Marco Bello Acquire Licensing RightsAug 31 (Reuters) - Florida-only insurers such as Citizens Property Insurance anticipate fewer losses from Hurricane Idalia than from previous storms in the state, even as industry experts expect further insurer pullback from the market. "This certainly will not help with ongoing challenges to Florida's insurance market, but it could have been a lot worse," said Steve Bowen, chief science officer at reinsurer broker Gallagher Re. The top 10 U.S. homeowners insurers such as State Farm and Allstate Corp (ALL.N) average only about 4.1% of their premiums in Florida, Moody's said. Reuters GraphicsThe exit of insurers from Florida comes amid a broader pullback from the market, including from reinsurers, according to an Aug. 24 Fitch report.

Persons: Hurricane Idalia, Marco Bello, Ian, Idalia, Moody's, Steve Bowen, Gallagher, Fitch, Noor Zainab Hussain, Manya, Matt Tracy, Shinjini Ganguli, Megan Davies, Matthew Lewis Organizations: REUTERS, Property Insurance, Hurricane, Reuters, Citizens, UBS, Insurance Information Institute, Gallagher Re, Farmers Insurance, Bankers Insurance, Lexington Insurance, AIG, Farmers, Bankers, Farm, Allstate Corp, Insurance, Institute, Manya Saini, Thomson Locations: Cedar Key , Florida, U.S, Florida, Florida's, Coast, Tampa Bay, Jacksonville, Idalia, USA, Lexington, reinsurers, South Carolina, Bengaluru, Washington

A vehicle drives on a flooded road after the arrival of Hurricane Idalia, in Cedar Key, Florida, U.S., August 30, 2023. Hurricane Idalia plowed into Florida's Gulf Coast with fierce winds, torrential rains and pounding surf before weakening but turning its fury on southeastern Georgia, where floodwaters trapped some residents in their homes. At about $10 billion, Idalia would cost insurers less than 10 of the costliest hurricanes to hit the United States. Higher reinsurance rates can affect the premiums that insurers charge their customers. FLORIDA PAINFlorida has a large number of very small, thinly capitalized insurers, insurance experts have said.

Persons: Hurricane Idalia, Julio Cesar Chavez, Thomas Hayes, Gallagher Re, Michael Peltier, Berkshire Hathaway, Ajit Jain, Noor Zainab Hussain, Manya, Chibuike Oguh, Jon Stempel, Devika Syamnath, Megan Davies, Cynthia Osterman Organizations: REUTERS, Hurricane, UBS, Global, Great, Great Hill Capital, Farmers Insurance, Bankers Insurance, Lexington Insurance, AIG, Farmers, Florida Office, Insurance, Bankers, Property Insurance Corp, Property Insurance, Berkshire, Manya Saini, Thomson Locations: Cedar Key , Florida, U.S, Florida, Coast, Georgia, United States, Ukraine, California, Great Hill, New York, FLORIDA, USA, Lexington, Berkshire, Bengaluru, Chibuike

Bigger insurers might not feel squeezed immediately in Hawaii, as the state has been historically lucrative for them. Insurers are primarily concerned with two factors when deciding how much coverage to offer and where: the frequency of claims and the severity of those claims. The Maui fires are another data point of losses for insurers. Since the start of the year, insurers have paid out more than $40 billion in damage claims, on a pace for a record in yearly losses. The insurers for insurance companies, also known as reinsurers, are an important part of the equation.

Persons: Ge, they’ve Organizations: New York University, underwriters, Farm, Allstate Locations: Hawaii

☆ How a Small Group of Firms Changed the Math for Insuring Against Natural Disasters
▼ + stars: | 2023-08-16 | by ( Emily Flitter | More About Emily Flitter | ) www.nytimes.com time to read: +1 min

As disasters like the wildfires that devastated the Hawaiian town of Lahaina and the storms that tore apart roofs from Alabama to Massachusetts last week intensify, insurance companies have pulled back from offering coverage in certain areas or cut the kinds of damage they will pay to repair. A little-noticed slice of the financial industry that provides insurance to insurers, called reinsurance, has helped drive the changes. These companies promise to step in with cash — usually huge amounts — when something like a hurricane, wildfire or other big disaster creates damage that is too costly and widespread for insurance companies to pay for on their own. And at the beginning of the year, nearly all of them raised prices. That led to a flurry of tense negotiations between those insurers and firms, like Swiss Re, Odyssey Re and other reinsurers, many of whom are headquartered outside of the United States.

Persons: reinsurers Organizations: Farmers, Swiss Locations: Lahaina, Alabama, Massachusetts, United States, Canada

☆ Barclays says hot seas will lead to a severe hurricane season and names one stock to benefit
▼ + stars: | 2023-07-28 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

As oceans warm, Barclays now anticipates a worse-than-expected hurricane season — and sees one stock that could be a good investment by the shift in outlook. Despite early expectations for a mild hurricane season given the El Niño weather pattern , Barclays analyst Craig Rye said the season should now be more severe than previously anticipated in both the Atlantic and Pacific Oceans. Beyond the human and economic costs of severe hurricane seasons, however, Rye said property and casualty insurance data provider Verisk Analytics could benefit from a more severe season as a result of higher claims. VRSK YTD mountain Verisk's 2023 It's already been a strong year for Verisk stock, with shares up more than 34% since 2023 began and reaching new all-time highs twice in July. Elsewhere, Rye noted reinsurers tend to outperform in hurricane season with little impact from the actual strength of that season.

Persons: Craig Rye, Rye, Verisk's, Tracy Benguigui, It's, — CNBC's Michael Bloom Organizations: Barclays, Atlantic, Colorado State University, CSU, Cyclone Energy, Munich Re Locations: Florida, Manatee Bay , Florida, Florida , Texas, Louisiana, Rye, California, Munich, Lancashire

☆ Insurer’s Retreat in Florida Signals Crisis With No Easy Fix
▼ + stars: | 2023-07-14 | by ( Emily Flitter | More About Emily Flitter | ) www.nytimes.com time to read: +1 min

Insurers are trapped in a riddle: In a world where the risk of costly disasters is rising but high premiums are squeezing policyholders and angering state regulators, how can they continue to make money? Farmers, one of America’s biggest home insurers, didn’t say what specifically led to its decision. Was the cost of payouts too high in recent years, which saw record-setting numbers of billion-dollar disasters, just as rates charged by reinsurers, which sell insurance to insurers, were rising? Or is Farmers playing a game of chicken with state regulators, hoping that walking away now will give it leverage to charge customers more in the future? “A lot of insurers have been losing a lot of money in Florida and they’ve been threatening to leave for years,” said Daniel Schwarcz, a professor at the University of Minnesota Law School who specializes in insurance.

Persons: they’ve, ”, Daniel Schwarcz Organizations: Farmers Insurance, reinsurers, Farmers, University of Minnesota Law School Locations: Florida

NEW YORK/LONDON, July 11 (Reuters) - One of the world's top insurers is mulling offloading its property reinsurance business in a bid to cut its exposure to natural disasters like hurricanes, according to three people familiar with the matter. Prices for U.S. property catastrophe reinsurance rose by as much as 50% at a key July 1 renewal date, broker Gallagher Re said in a recent report. AXA has been trying to reduce the exposure of its AXA XL property and casualty (P&C) division - which houses XL Re - in an effort to make earnings more predictable. This has caused the reinsurance business to shrink, with revenues dropping by nearly a third last year to $3.2 billion, according to AXA's 2022 accounts. In May, American International Group (AIG.N) agreed the sale of its reinsurance arm Validus Re for roughly $3 billion, or about 1.4 times the unit's book value.

Persons: Reinsurers, Hurricane Ian, Gallagher Re, David French, Pablo Mayo, Amy, Jo Crowley, Carolyn Cohn, Echo Wang, Silvia Aloisi, John O'Donnell, Conor Humphries Organizations: AXA SA, XL, Covea, AXA, AXA XL, American International, Fidelis Insurance Holdings, Reuters, Hamilton Insurance, Pablo Mayo Cerqueiro, Thomson Locations: Bermuda, New York, London, Paris

☆ Third quarter is a key time for extreme weather events. Here's what to expect for exposed stocks
▼ + stars: | 2023-07-04 | by ( Alex Harring | ) www.cnbc.com time to read: +7 min

The third quarter is a key time for extreme weather events. An El Niño weather pattern is widely expected for 2023. "Following three years of La Niña, climate scientists expect 2023 to have El Niño conditions with near-100% certainty given current signals," Karp said in a note to clients last month. Insurers are also among the stocks to typically move in relation to extreme weather events. This year should be a fairly typical one for hurricanes, as El Niño is typically linked to a less severe season.

Persons: Nature, —, Sophie Karp, La, Karp, El, bode, Morgan Stanley, Andrei Stadnik, Stadnik, Matthew Carletti doesn't, hasn't, Jefferies, Yaron Kinar, Brown, Arthur J, Gallagher, Aon, Niño, Generac, Aaron Jagdfeld, Bob Huang, bullish, — CNBC's Michael Bloom Organizations: National Oceanic, Atmospheric Administration, Energy, DTE Energy, WEC Energy, CNBC Pro's, WEC, Xcel Energy, Portland General Electric, Edison International, CenterPoint, Southern Company, Duke Energy, Nextera Energy, El, Insurance Australia Group, Suncorp, Arch Capital, Everest Re, Bloomberg, Arch Locations: El, Canada, U.S, Gulf, Pacific Northwest, California, Michigan, Avista, Portland, American, Mexico, CenterPoint Energy, Bermuda, Texas

☆ U.S. property catastrophe reinsurance rates rise up to 50% on July 1-report
▼ + stars: | 2023-07-03 | by ( ) www.reuters.com time to read: +2 min

Higher reinsurance rates can affect the premiums which insurers charge to their customers. U.S. reinsurance rates for policies which previously faced claims for natural catastrophes rose 30-50%, Gallagher Re said. Reinsurance rates for similar policies in Florida rose 30-40%, the broker added. State Farm said in May it would stop selling new insurance policies to homeowners in California. Reinsurance rates for some types of aviation war policies rose by up to 100% on the July 1 renewal date, Gallagher Re said.

Persons: Mike Blake, Gallagher Re, James Vickers, Gallagher, Hurricane Ian, Aon, Carolyn Cohn, Noor Zainab Hussain, Louise Heavens Organizations: REUTERS, Farm, Gallagher Re, Reuters, Vickers, Hurricane, U.S, Industry, Boeing, Thomson Locations: Laguna Niguel , California, U.S, California, Florida, In Florida, Russia, Khartoum, London, Bengaluru

New York CNN —Homeowners insurance is becoming more expensive and, in many places, more difficult to find. The companies also blame limits placed on insurance premiums in some states, including California. Insurance premiums nationwide aren’t up significantly – only 1.6% in the last 12 months according to the Consumer Price Index, the government’s main inflation measure. For instance, in Louisiana, 17% of homeowners insurance policyholders had their policies canceled last year, according to an annual report from Louisiana State University. Meanwhile, more than two-thirds of policyholders said homeowners and flood insurance are more expensive in Louisiana than other states.

Persons: Ian, ”, Matthew Carletti, “ They’ve, it’s, ” Carletti, Dave Jones, ” Jones, policyholders, Carletti, Frank Frievalt’s, ” Frievalt, “ Organizations: New, New York CNN — Homeowners, Farm, Allstate, JMP Securities, Consumer, State Farm, State, Louisiana State University, Citizens Property Insurance, UN Locations: New York, Florida, California, California , Florida, Louisiana, Nevada, , California

☆ Tornado alley is widening, putting millions more people and properties at risk
▼ + stars: | 2023-06-12 | by ( Diana Olick | In Dianaolick | ) www.cnbc.com time to read: +4 min

Much of that is because the season is starting earlier, and tornado alley is expanding due to a warmer climate. Tornadoes need four ingredients to form, explained Ashley: moisture, instability (which provides the energy necessary for the storms), wind shear and lift. When a powerful F-4 tornado plowed through Rolling Fork, Mississippi, in March, residents were largely unprepared. The only one that I can remember is 1971, and the tornado bypassed Rolling Fork. That's precisely why the widening of tornado alley is fast becoming a new focus for insurers.

Persons: Walker Scott Ashley, Ashley, Eldridge Walker, Walker, That's, John Dickson, Dickson, Eric Andersen, Aon Organizations: Climate Central, Northern Illinois University, Tornadoes, Global, U.S ., Farm, Allstate Locations: U.S, Northeast Texas, Oklahoma, Arkansas, Fork , Mississippi, Rolling, Kansas, Mississippi, Aon, California

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