Hurricanes, Fires to Hit Insurers With Double-Digit Rate Hikes
A man crosses the street during a pouring rain in Fort Lauderdale, Florida as Dorian stalled over the Bahamas on Sept. 2.
Photographer: Eva Marie Uzcategui/AFP via Getty Images
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Hurricane Dorian, the storm currently wreaking havoc on the Bahamas, and more severe wildfires will probably force the world’s biggest reinsurers to increase their rates by about 15%, according to Moody’s Investors Service.
Munich Re and Swiss Re AG, the two largest reinsurers, and their smaller rivals begin negotiating their new rates with their insurance clients in the next few weeks. The average increase will be “mid-teens on the loss-affected lines,” according to Antonello Aquino, Moody’s associate managing director for EMEA insurance.