Reinsurance rates decline
Guy Carpenter has reported that reinsurance rates across most lines of property catastrophe business decline at 1st January 2010.
According to the broker, economic recovery, swift capitalisation in the reinsurance sector and low catastrophe losses result in ample supply and increased competition.
The Guy Carpenter World Catastrophe Rate on Line Index fell by 6% at the start of the year, with some key influencing factors as follows:
Risk-adjusted catastrophe prices in the US decreased by an average of 6%, although factoring in modelling adjustments, rates declined by as much as 11%.
Catastrophe pricing in Continental Europe was flat to 5% lower, despite a number of localized losses in a year of above-average weather-related events.
UK property catastrophe rates declined between 5% and 10% while risk excess prices were flat to down 15%, subject to loss experience.
Guy Carpenter’s global head of business intelligence, Chris Klein, comments: “As we move into 2010, it’s safe to say that the property casualty reinsurance market has weathered the global financial crisis and emerged in a relatively strong position, with abundant capital and ample capacity for most lines of business.”
He adds: “At the same time, the environment in which reinsurers operate will continue to be influenced by global economic conditions as much as underwriting decisions, and these macroeconomic factors will continue to warrant close attention.”
Category: Insurance News
Visited 1557 times, 2 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.