Price increases in January 1 reinsurance renewals were lower than originally expected, according to a report released on Tuesday by Guy Carpenter LLC, the reinsurance business of Marsh & McClennan Cos. Inc.
Customers generally saw increases in the high single-to-low double-digit range, with loss accounts seeing higher increases, said Guy Carpenter. In some cases, the policy language was also sharpened.
In the United States, non-loss programs in the United States have increased the pricing of property insurance in middle-digit figures for low-income adolescents, while the regions of Europe, the Middle East and Africa and Asia-Pacific low-figure figures increase in percentage.
The formulation of exclusively communicable diseases was discussed "at every real estate renewal worldwide," said Guy Carpenter. "Due to the potential global nature of this type of loss and the possible broader financial market correlation, capital providers and investors in most cases demanded exemptions."
The reinsurance markets for accidents varied more with renewals in January based on loss experience, covered lines and industry classes written. "More challenging loss experience or industry classes" saw higher price pressure and more restrictive wording.
Cyber aggregates experienced price pressure in particular due to "continued" capacity tightening.
Pandemics and infectious disease languages were most challenging. for workers' compensation, long-term programs and accident programs with special exposures.
The January 1
David Priebe, President of Guy Carpenter, noted in the report that a robust insurance-related securities sector helped strengthen reinsurance capital.
during the fourth quarter, ”he said,“ which meant a full-year issue of $ 10.8 billion, a new record for annual real estate and emergency disaster bond tivity.