Some global catastrophe property reinsurance rates will fall 5% to 15% on Jan. 1, Reuters broker says
LONDON (Reuters) – Global property catastrophe reinsurance rates will fall by 5% to 15% on January 1 for non-loss books, reinsurance broker Guy Carpenter said on Monday, as the market becomes more competitive after years of rising rates.
Reinsurers insure insurers, and in recent years have raised prices and cut some business after increased losses from wars and natural disasters. However, reinsurers have become more willing to take on risk after enjoying big profits, said Guy Carpenter, a unit of Marsh McLennan (NYSE: ).
“The year-end renewal results reflect the reinsurer’s positive experience over the past two years,” Dean Klisura, president and chief executive officer of Guy Carpenter, said in a statement.
However, insurance portfolios that faced catastrophe losses in the United States, Europe and Canada will see flat rates, or increases of up to 30%, Guy Carpenter added.
