The annual report from Guy Carpenter detailing the worlds catastrophe reinsurance market is now available. They found that rates have dropped by 10% on average in 2008 compared to 6% in 2007. Peter Zaffino, President and CEO Guy Carpenter, said: “We continue to see a convergence of capital markets and reinsurance. With instruments such as catastrophe bonds and sidecars playing an increasingly prominent role, we would expect to see a rapid and substantial inflow of capital following the next mega-catastrophe. This added market elasticity should eventually help temper cyclical swings and tame the peaks we have seen in the past in hard markets.”
You can download the full report here.