Property catastrophe reinsurance pricing has declined by 15% to 20% across many layers of the tower at the June 1st renewals according to broker Guy Carpenter, who highlighted improved property insurance market conditions, strong reinsurer balance-sheets and rising investor appetite as key drivers of the renewal dynamics.
The landmark legal reforms made in late 2022 are highlighted as a key reason for improved property insurance market conditions in Florida and this has served to raise reinsurer and investor appetite for risks in the state.
“Materially stronger balance sheets, improved underwriting performance, and sustained investor interest in Florida risk,” have all helped ceding companies derive better reinsurance renewal pricing at June 1st, Guy Carpenter explained.
Reinsurers and ILS markets expanded their appetites across attachment points, the broker said, while quota share markets also showed notable improvements.
In addition, insurers secured “additional catastrophe occurrence and aggregate limits and enhanced ceding commissions, reflecting confidence in the improved performance outlook,” the reinsurance broker said.
Notably, demand was seen to be much higher this year, helped by the continued privatisation of policies from Florida Citizens.
As a result Guy Carpenter said its clients secured 12% more in property catastrophe reinsurance capacity at this renewal compared to a year earlier.
Both reinsurers and ILS investors responded to this increased demand, to provide the additional limits being sought.
In addition, more Florida focused catastrophe bond activity was seen, with the broker citing $3.2 billion of Florida cat bond coverage issued for 12 sponsors so far in 2026, 3 of which were first-time sponsors.
An appetite to grow in Florida has been seen from many quarters, both the traditional reinsurance market and in insurance-linked securities.
There was a “broad increase in risk appetite across attachment points and a willingness to consider expanded coverage,” Fuller explained.
Adding, “There was abundant capacity for products such as lower-attaching catastrophe layers and reinstatement premium protection, which were previously areas of constrained capacity in recent years.”
Fuller further highlighted that, “Parametric offerings also found some footing through unique structures solving for frequency risk in ways that the traditional market has not yet readily offered.”
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