Hiscox Ltd. predicts 10% increase in U.S. catastrophe business during June/July 2011 renewals

Hiscox Ltd. (LSE:HSX), an international specialist insurer, expects reinsurance rates to rise about 10% in U.S. catastrophe business during the June and July 2011 renewal period.”The first quarter began with rate reductions in reinsurance lines but the recent catastrophes have changed the market,” Hiscox notes in its 2011 Q1 Interim Management Statement. “Reinsurance rates are now back to 2010 levels with increases in some areas, especially in the Asia Pacific. “We expect increases to become widespread during the June/July renewal period with potential average rate rises of around 10% in U.S. catastrophe business, as the market is also impacted by the new RMS 11 model.”