Most property prices rose by low to mid-digit percentages as claims markets were more orderly but still rattled by concerns over “nuclear judgments”, according to an April 1 reinsurance renewals report issued Monday by Gallagher Re, Arthur J’s reinsurance business. Gallagher & Co.
In the US, loss-free non-catastrophe accounts saw rate increases of 20% to 40%, while loss accounts saw increases of 60% to 100%. Catastrophe-exposed, no-loss accounts increased by 30% to 50%, while catastrophe-exposed loss-hit accounts rose by 50% to 100%.
James Vickers, chairman international, reinsurance, at Gallagher Re, said Business insurance that the renewals on 1April were more orderly than on 1 January because expectations among counterparties were not as far apart as before.
Reinsurance renewals in Japan made up the bulk of activity in April, with non-catastrophe non-loss accounts rising 15% to 20%, while loss accounts rose 20% to 50%. Catastrophe-exposed, loss-free accounts increased by 15% to 25%, while no range was specified for loss-hit accounts.
In India, rates rose sharply, with non-catastrophe no-loss renewals up 10% to 75% and loss hit accounts up 15% to 160%. Catastrophe-exposed properties increased by 25% to 90%, while no range was given for loss accounts.
Some coverage received more scrutiny and subsequent restrictions than others. “Cyber, communicable disease, terrorism, strike and riot (SRCC) became a frequent talking point with reinsurers seeking to limit coverage,” the Gallagher Re report said.
The casualty markets, while undisturbed by the tumult of the property booms, “are still a concern,” Mr. Vickers, with positive price movements in all geographical areas.
In the US, third-party general liability was unchanged at up to 5% for non-loss accounts and 5% to 15% for loss accounts. In Japan, general liability for third parties increased by 10% to 20% in the absence of losses and 20% to 30% in the event of losses.
Rising litigation remained a problem, the Gallagher report said. “Nuclear awards for US casualties are making their presence felt in many US casualty placements and in some cases on agreements with temporary exposure to the US.”