National Underwrtiter: Some Reinsurance Rates up as much as 14%

What does this mean? When you buy a $1million liability policy, the insurance company usually takes on the first $100,000 or so. Some companies insure the whole $1million themselves.

Whatever the case – most companies buy reinsurance, that is additional financial backing from other insurance companies in the business of insuring insurance companies. AIG used to reinsure loans.

This POST from the National Underwriter details how the economic conditions are affecting that market.

What does this mean to us? – some rate increases on property insurance. The biggest impact would be on Flood and Earthquake policies… since Hurricanes back have been the biggest driver of the rate spikes. (Natural disaster policies)