Information from worldwide reinsurance broker Man Carpenter reveals that property disaster rates-on-line in Continental Europe increased by 30% at the January first, 2023, renewals, marking the biggest single increase because 2001.
This is according to Guy Carpenter’s Continental Europe Property Catastrophe Rate-On-Line Index, which reveals that the typical rate-on-line for this class of business is now back near the levels seen in 2007.
It’s the biggest single increase in this Index because 2001 when a 38.9% typical boost was tape-recorded by Man Carpenter, which was followed by a 27.5% increase in 2002.
At the January 2022 reinsurance renewals, this Index increased by 23%, in part as an outcome of the significant level of flood losses seen in Germany throughout 2021.
The 30% increase in Guy Carpenter’s Continental Europe Property Catastrophe Rate-On-Line Index at the January 2023 renewals, suggests the Index has actually now increased by 60% in 2 years, which uses a substantially more appealing rate environment in the area.
For the chart below, information is sourced from genuine, brokered excess-of-loss reinsurance positionings which Man Carpenter has actually kept because 1990.
The Index is upgraded after the January first renewals each year and is determined by evaluating the modification in reinsurance rate-on-line (RoL) year on year throughout the very same renewal base.
It’s clear that after sustaining a low throughout the extended soft market in between 2016 and 2021, property disaster rates in Europe have actually increased substantially over the previous 2 years.
What’s more, sources recommend that rates-on-line for this business are still inadequate and not sustainable at present levels, so it will be fascinating to see what occurs to European property cat prices throughout 2023, specifically if there are significant losses in the area.
