While upward movement in property pricing was limited to localized activity, the effects on profitability from losses in this sector put pressure on other lines to achieve or maintain self-sustaining levels. (Photo: Shutterstock)
The overall impact of catastrophe losses on property rates was muted for reinsurance renewals at the beginning of 2019, but the fourth highest annual catastrophe loss year on record did create questions over pricing adequacy, underwriting strategy, and the amount of capital available, Guy Carpenter & Company LLC, a wholly owned subsidiary of Marsh & McLennan Companies, said in a recent statement.
The company said potential sector pressure from global catastrophe losses in the second half of 2018 and the continued development of 2017 claims was partially offset by plentiful capacity. Its Global Rate on Line Index, a measure of change in catastrophe premium dollars paid year-on-year, increased just 1.1% despite back-to-back years of major loss accumulation as a result.
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Denny Jacob
Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected].
