Reinsurance rates expected to rise following huge hurricane losses: Officials
Posted On: Oct. 17, 2017 4:00 AM CST
Richard Lowther, chief operating officer at Bermuda-based Hiscox Re Insurance Linked Strategies Ltd., said that reinsurance rates are likely to rise following huge catastrophe losses recorded by insurers due to hurricanes Harvey, Irma and Maria, The Royal Gazette reported. Mr. Lowther said that investors are expected to put capital into insurance-linked securities at the Jan. 1, 2018 renewals. "Large catastrophe losses lead to capacity shortfalls, business needs to continue and so something has to shore up that hole in the balance sheet," said Brenton Slade, chief operating officer at Bermuda-based insurance management firm Horseshoe Group.