Oil prices are going through the roof, but in Bermuda and London a wilder ride is expected as the 2006 season treaty renewal season begins for reinsurance. Some companies are pulling back while others are ratcheting up business in America.
Bermuda companies lost over $2.8 billion in catastrophe losses last year. So what happens, over $18.4 billion in new capital from investors has entered the reinsurance market hoping to capitalize on rising reinsurance rates.
What does it all mean to you the insurance buyer. No one knows for sure, but this sage predicts reduced premiums for fiduciary and human failure risks, and increased premiums on the casualty side especially in coastal states.
We will see.
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