Global property catastrophe reinsurance rates are set to decrease by 5% to 15% on January 1, 2025, for portfolios without any recent loss history, according to reinsurance broker Guy Carpenter. This shift signals increasing competition in the market after several years of steady price hikes.
Reinsurance—where insurers secure coverage for their risks—has seen higher prices and stricter terms in recent years due to escalating losses from natural disasters and wars. However, a more favorable property loss record and strong profits have made reinsurers more open to assuming risks, according to Guy Carpenter, part of Marsh McLennan (MMC.N).
Dean Klisura, President and CEO of Guy Carpenter, stated, “Year-end renewals reflect reinsurers’ strong property performance over the past two years.”
Key Highlights:
- Rates for loss-free insurance portfolios will decrease by 5% to 15%.
- Portfolios with recent catastrophe losses in the U.S., Europe, and Canada could face either unchanged rates or increases of up to 30%.
This development indicates a stabilizing reinsurance market, with pricing shifts tailored to risk history.
