The Guy Carpenter Global Property Catastrophe Rate-On-Line Index leverages information sourced from genuine, brokered excess-of-loss reinsurance positionings, and has actually been kept by the reinsurance broker considering that 1990.
It is the exclusive index of international property disaster reinsurance rate-on-line motions, covering all significant international disaster reinsurance markets, and is upgraded following January first renewals each year by determining the modification in rates-on-line year-on-year throughout the exact same renewal base.
The information reveals that the Index has actually been on the increase considering that the January 2018 reinsurance renewals, when it increased by 5.3% after falling 3.7% in 2017.
On average, at the particular January renewals, international property cat rates-on-line increased by 1.1% in 2019, 4.6% in 2020, 4.5% in 2021, and after that by 10.8% at the January 2022 renewals.
This year, at the January 2023 renewals, the Index increased by 27.5%, so more than double the boost seen a year previously, guaranteeing that this was the 6th successive year of boosts for the international property cat reinsurance index, representing a cumulative overall boost of ~65%.
As the chart listed below programs, it’s really the greatest favorable modification in this index considering that 2006 when rates-on-line increased by approximately 36.6%, with the Index now almost back at the level seen that year.
As has actually been reported by brokers and re/insurers, much steeper reinsurance rate boosts were accomplished throughout agreements worldwide at the January 2023 renewal, with that agreement renewal season a substantial factor to this Index.
Guy Carpenter’s Chief Executive Officer (CEO), Dean Klisura, recommended that reinsurers had the upper hand at the January cat renewals, as the reinsurance broker cautioned that the market discovers itself at a “crossroad” after a tough duration.
