Guy Carpenter Global Property Catastrophe Rate-On-Line Index

Latest commentary from Guy Carpenter

January 1 Reinsurance Renewals Commentary

This Index has risen by 27.2% at January 1st 2023, reflecting the steep price increases achieved on global property catastrophe reinsurance contracts by reinsurers at the renewals.

This is more than double the increase seen a year earlier, when this Index rose by 10.8% at Jan 1 2022.

Far steeper reinsurance rate increases were achieved across contracts globally at the January 2023 reinsurance renewal, with that contract renewal season a significant contributor to this Index.

It was the biggest positive change in this Index since 2006 and takes the Index almost back to the level seen that year.

This was the 6th consecutive year of increases for the Global property cat reinsurance index, representing a cumulative total increase of ~65%.

Guy Carpenter called the January 2023 reinsurance renewals “one of the most challenging reinsurance markets the sector has experienced,” saying it believes that cedents and reinsurers have been working “to establish a new market equilibrium.”

Incorporating the mid-year 2023 reinsurance renewals, the increase in the Guy Carpenter Global Property Rate on Line Index rose to 29.3%*.

* Preliminary numbers.

• View the Guy Carpenter U.S. Property Catastrophe Rate-On-Line Index.
• View the Guy Carpenter Regional Property Catastrophe Rate-On-Line Index.

The Guy Carpenter ROL index is a measure of the change in dollars paid for coverage year on year on a consistent program base.  The index reflects the pricing impact of a growing (or shrinking) exposure base, evolving methods of measuring risk and changes in buying habits, as well as changes in market conditions.  Unlike risk-adjusted measurements, the index is not dependent on the model or method used to measure the amount of perceived risk in a program, which can vary widely.