After incorporating data from the mid-year renewals, global property catastrophe reinsurance rates are now estimated to have risen by approaching 30% year-to-date, according to Guy Carpenter.
The reinsurance broker presented its latest outlook for the reinsurance market today, during a pre-Monte Carlo Rendez-vous briefing.
The Guy Carpenter Global Property Catastrophe Rate-On-Line Index is a proprietary index of global property catastrophe reinsurance Rate-on-Line movements, for brokered excess of loss placements, that has been maintained by the reinsurance broker since 1990.
This Index had risen by 27.2% at January 1st 2023, reflecting strong price increases achieved by reinsurers at renewals.
Now, adding in preliminary findings from mid-year reinsurance renewal pricing, the broker reports that the Index is now up 29.3% year-to-date.
To analyse an interactive version of the Index, click on the image below:
Speaking during today’s briefing, Dorothee Moutafis, Chief Operating Officer, North America at Guy Carpenter, said that, “The US property catastrophe rate online index increased 35% year-on-year, while the Asia Pacific rate online index increased 16% including mid-year adjustments.
“Incorporating these shifts in key geographies with other regions remaining largely stable from January 1st, the global property catastrophe rate-on-line index increased to 29.3% for 2023, from the January 1 figure of 27.2%.”
“The rate-on-line increases were actually less than the risk-adjusted pricing, as the changes in the indices were tempered by broad-based increases in retentions from clients.
“The rate-on-line index more closely represents the change in actual dollars paid, in most cases for coverage significantly further removed from expected loss.”