Recent floods could trigger reinsurance rate hikes
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Analysts at U.S.-based Morgan Stanley & Co. LLC expect further reinsurance rate hikes in Australia after the recent storms and flooding in New South Wales and Queensland, Artemis reported. Insurers Insurance Australia Group Ltd. and Suncorp Group Ltd. are expected to breach their catastrophe budgets due to the recent flood-related claims, triggering reinsurance arrangements such as quota shares and excess-of-loss towers. The Insurance Council of Australia has estimated insured losses of $438 million Australian ($333.8 million).
