Jan. The rate of increase in property reinsurance renewal ranged sharply from the low to the double digits, while the accident rate ranged from unchanged to up to 20% with much less range in increases than property lines, Gallagher Re said on Tuesday.
European weather events, including heavy events . floods in Germany in July and Swiss hailstorms Volker and Xero in June and Dirk in late July, caused significant losses and increased reinsurance prices in loss-making areas, causing peaks of over 50% in markets that have been stable for several years, Gallagher Re said.
Property reinsurance prices in the United States rose by 10% to 25% as reinsurance companies also sought to adjust upward points for lower inventories affected by losses from so-called "secondary hazards" including wildfires and severe convective storms.
] Reinsurance renewals moved in a much narrower range and generally only low double digits, with some renewals unchanged. For example, the US general liability for third parties was unchanged at up to 1
James Kent, global CEO of Gallagher Re, called it a "more challenging renewal season than most" as "hopes of more profitable 2021 results were hit by an increase in natural disaster losses, which saw many reinsurance companies strongly advocate the need for price increases, especially on underperforming contract. "
However, he added," that the pressure was not consistent across the market, with quotas on lines other than cats being coveted. "