Global catastrophe reinsurance rates set to fall

(Reuters) – Global property catastrophe reinsurance rates will fall 5% to 15% on Jan. 1 for books of businesses that have not suffered losses, reinsurance broker Guy Carpenter & Co. LLC said on Monday, as the market becomes more competitive after years of rate rises.

Reinsurers have raised prices and excluded some business in recent years following increased losses from wars and natural catastrophes. However, reinsurers have become more willing to take on risk after enjoying strong profits, Guy Carpenter said.

“Renewal outcomes at year-end reflect reinsurers’ positive property experience over the last two years,” Dean Klisura, president and CEO of Guy Carpenter, said in a statement.

However, insurance portfolios that have faced catastrophe losses in the United States, Europe and Canada will see unchanged rates or rises of up to 30%, Guy Carpenter added.