Reinsurers took more peak zone cat risk at Jan. 1 despite softening: Moody's

Moody's Investors Service Inc. said that several reinsurers increased their allocation to peak zone catastrophe risks at the January 1 renewals despite rates continuing to decline across the sector, reports Artemis.bm.

Reinsurers appear to have taken on more peak zone catastrophe risk in order to secure additional premiums from low probability event risk.

Data from Moody's showed that Swiss Re Ltd. increased its 1-in-250 year event probable maximum loss for U.S. wind exposures by 4.7% at the renewals.

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