Bermuda re/insurers should carry pricing momentum through 1/1 renewals

Bermuda re/insurers can take rate momentum through the 2023 renewals as the industry continues to play catch-up against a long history of rising claims costs born from surging natural catastrophe,  S&P analysts have said in a report.

“Sunny days could still be on the horizon, however, since industry losses sparked rate increases in the past few years, which will likely continue as we head into the 2023 reinsurance renewals,” analysts wrote.

The island-based industry has suffered half a decade of underperformance, with only a handful of stand-outs ever producing underwriting profits.

Bermuda ended up increasing its share of the global natural catastrophe losses from 3.5% to 5.5% during that period 2017-2021. The frequency and severity of secondary perils, such as wildfires, convective storms, floods, and more, played no small role. COVID-19 added a mass level of losses across the top.

Over the course of those five years, Bermudian re/insurers posted $21 billion in natural catastrophe losses and $3 billion in COVID-19-related claims, analysts noted.

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