Global property cat reinsurance rate Index up 76% since 2017: Guy Carpenter

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.

The reinsurance broker’s latest data shows that global property catastrophe reinsurance rates-on-line were up an estimated 5.4% at 1/1 2024.

But, with now a number of consecutive years of increases now under its belt, this Index is now up by a stunning 76% since the year the last soft reinsurance market ended, which was 2017.

The Guy Carpenter Global Property Catastrophe Rate-On-Line Index is a proprietary index of global property catastrophe reinsurance Rate-on-Line movements, for brokered excess of loss placements, that has been maintained by the reinsurance broker since 1990.

This Index has risen by an estimated 5.4% at January 1st 2024, Guy Carpenter explained, reflecting additional price increases being achieved by reinsurers at the recent renewal placements.

To analyse an interactive version of the Index, click on the image below:

It is now seven consecutive years where this Index of property catastrophe reinsurance rates-on-line has risen at the 1/1 renewal season.

The pace of change has slowed considerably for 2024 though, dropping from the almost 30% gain across all renewals at 2023 and the roughly 27.2% gained at 1/1 of that year.

But the fact rates have risen further, for reinsuring property catastrophe risks around the globe, suggests another profitable year for reinsurance underwriters and of course insurance-linked securities (ILS) funds in 2024, loss activity allowing.

Notably, this Index of global property catastrophe reinsurance pricing is now up by 76% since its last low point reached in 2017, the height of and end of the last soft reinsurance market, since which this Index has risen every year.

Guy Carpenter also said that regional calculations include the US index increasing by 5.25%, but that property catastrophe reinsurance rates in Europe actually rose slightly faster this time around, by 7.6% at January 1st 2024.

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