Latest commentary from Guy Carpenter
January 1 Reinsurance Renewals Commentary
This Index has risen by 10.8%* at January 1st 2022, reflecting the price increases achieved on global property catastrophe reinsurance contracts by reinsurers at renewals.
This is more than double the increase seen a year earlier, when this Index rose by 4.5% at Jan 1 2021.
That reflects far steeper increases now achieved in Europe at the 2022 reinsurance renewal, which make up a significant contributor to this Index at the January 1st season.
It is also the biggest positive change in this Index since 2006 and takes the Index back to levels last seen prior to 2014.
Guy Carpenter explained that, where rates and pricing moved higher in property catastrophe reinsurance risks, structure adjustments, especially on retentions, were most prevalent in the heavier loss-impacted sectors.
In fact, while pricing movements spanned a wide range, on a risk-adjusted basis, non-loss-impacted property reinsurance renewals were generally flat to up 7%, while loss-impacted rose by between 10% to more than 30%.
* 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.