catastrophe reinsurance

Legislation that calls for a Federal Catastrophe Reinsurance Program to be established has been resurrected in the United States Senate, with more support this time around and still a section of the INSURE Act highlighting the importance of capital markets alternatives to reinsurance, such as catastrophe bonds.

Reinsurance broker Guy Carpenter has updated its property catastrophe reinsurance rate on line indices today and the latest data shows that after the April and mid-year renewals, property cat reinsurance rates have fallen 8.1% globally, 6.7% in the United States and a more significant 15.9% in the Asia Pacific region.

Property catastrophe reinsurance rates declined across the globe at the January 1st 2025 reinsurance renewals, with broker Guy Carpenter’s rate-on-line indices for the world, US, Europe and Asia Pacific all falling to start the new year.

Auckland, New Zealand-headquartered insurer Tower Insurance made some adjustments to its reinsurance programme at its renewal, opting to increase the size of the upper catastrophe limit and raise the attachment point for the first two events, resulting in a lower reinsurance spend for the firm. Tower’s FY25 reinsurance programme provides the carrier with protection for […]

Property catastrophe reinsurance rates-on-line slowed further at the recent mid-year renewals, with a general flat to slightly down rate environment, resulting in broker Guy Carpenter’s U.S. Property Catastrophe Rate-On-Line Index now being up by just 1.2% in 2024.

Property catastrophe reinsurance rates-on-line slowed their trajectory significant at the January 2024 renewals, but in the United States while the slow-down was a little more severe than some other regions, US property cat reinsurance rates are now a stunning 116% up since 2017, according to Guy Carpenter’s Index.

Including the latest reinsurance renewals data from January 1st 2024, global property catastrophe reinsurance rates are now up by an estimated 76% since 2017, according to Guy Carpenter’s widely cited Index.

Rating agency AM Best has noted that there are signs of increasing appetite for property catastrophe reinsurance, saying that capacity to service that part of the market may be close to a “positive inflection point.”

The global reinsurance market is still facing an imbalance between the rising demand for protection being seen and the fact inflows of capital to the sector remain sluggish, something Munich Re is not expecting to reverse any time soon, one of its executives said last week.

Global reinsurance giant Munich Re said this morning that it has additional capacity available for natural catastrophe risks, as long as the market remains disciplined and price as well as terms and conditions continue to be appropriate.