How the Economy Has Affected the Reinsurance Market

Inflation prices and increased interest rates have dramatically affected the reinsurance market. With the costs of claims being higher due to inflation along with more frequent claims over the past few years from the pandemic and unexpected natural disasters there has been a strain on the capacity of the reinsurance market. Reinsurers are having difficulty accessing capital and funding the increased cost of that capital.

Due to lack of capital, reinsurers are having to cut down on their coverage, either non-renewing current policies or increasing policies that smaller insurance companies are unable to afford causing them to make difficult decisions including closing the doors or being sold off.

Mutual Underwriters has reviewed several reinsurance contracts where the current reinsurer has abandoned the market and will not cover losses occurring after January 1, 2024. As a result, those Mutuals will have no reinsurance protection/recoveries for any losses occurring after January 1, 2024, even though they will have continuing exposure to policies that have not reached their expiration dates.

This is not a single reinsurer; other reinsurers have been facing a similar crisis over the past year. Forcing them to greatly increase rates and leaving many mutuals without coverage and in an untenable situation.

Mutual Underwriters may be the solution you are seeking. With a strong focus on small mutuals and helping those who work hard and have become staples in their communities. We understand that a storm causing high claims is not your fault. Neither is the current economic crisis or high inflation rates.

How does Mutual Underwriters cover you when other reinsurers are ready to non-renew?

  1. We focus on working directly with you from the start to finish of the process.
  2. With an abundance of capital, unlike other reinsurers, we can provide you with full coverage at a rate you can afford.
  3. We offer custom reinsurance solutions.


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