The decline in reinsurance pricing moderated at the January 1, 2017 renewal across most classes of business and geographies, as compared to the past three renewal seasons, Guy Carpenter & Company, LLC, global risk and reinsurance specialist and wholly owned subsidiary of Marsh & McLennan Companies reported today.
Several sectors faced increased losses, which had only a localized impact on pricing, Guy Carpenter reported, while capacity remained plentiful. According to calculations by Guy Carpenter and A.M. Best, after remaining fairly stable in 2015, dedicated reinsurance capital increased by 5 percent from Jan. 1, 2016 to Jan. 1, 2017. The convergence capital segment increased by 10 percent.
The Guy Carpenter Global Property Catastrophe Rate-on-Line index tracking property catastrophe pricing fell 3.7 percent at Jan. 1, as compared to close to 9.0 percent a year ago. The insurance-linked securities, or ILS, space, in contrast saw significant changes in pricing during the fourth quarter with decreases as high as 30 percent.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
