Guy Carpenter Confirms Slowing of Pricing Declines in June Renewals
Friday, 07 03 2015, Category: Insurance and Reinsurance, Country: World
Guy Carpenter & Company, LLC, has reported that “after two years of price decreases averaging 15 percent on U.S. property catastrophe placements, risk-adjusted pricing moderated at the most recent June renewals.
“Price declines moderated to decreases averaging in the high single digits, with the range around the average dependent on companies’ individual renewal characteristics. This was due to a combination of factors, including pricing pressure created by past seasons of price declines and a significant amount of new limit placed,” the bulletin continued.
Guy Carpenter’s Global Head of Property Specialty Lara Mowery explained: “Many reinsurers held the line against more extreme declines even though capacity was still plentiful and low loss experience continued. We have seen some firming in the Industry Loss Warranties (ILW) market with demand increasing. Also, while mid-year has not been a core date for retrocession renewals, there has been a significant amount of activity in this marketplace as buyers sought to offset their catastrophe exposures.”
Source: Insurance Journal