This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred.
Reinsurance broker Guy Carpenter has updated its property catastrophe reinsurance rate on line indices today and the latest data shows that after the April and mid-year renewals, property cat reinsurance rates have fallen 8.1% globally, 6.7% in the United States and a more significant 15.9% in the Asia Pacific region.
Recall that, these indices for property catastrophe reinsurance rates and pricing largely fell at the start of the year.
The January 2025 declines were the first since 2017 for all of the indices, except for Asia Pacific, where after a rebasing and re-evaluation of the data for the rate-on-line (RoL) Index for that region, Guy Carpenter’s data showed a decline occurred there in 2024 as well.
Now, the declines have continued and accelerated in all cases after Guy Carpenter has incorporated the market data from the mid-year June and July reinsurance renewals into its indices.
First, the Guy Carpenter Global Property Catastrophe Rate on Line Index, which is its proprietary index of global property catastrophe reinsurance Rate-on-Line movements, on brokered excess of loss placements, that has been maintained by the broker since 1990.
The Global Property Catastrophe Rate on Line Index fell by 6.6% at the January 1 2025 renewals, which was its first decline since 2017.
Now, after including market data from the mid-year renewals, this Global index is now down 8.1% for 2025 to-date.
Despite these declines, this Global index of property catastrophe reinsurance rates and pricing is still higher than all years running from 2006 to 2023.
Notably, this Index of global property catastrophe reinsurance pricing is still 57% higher than its last low in 2017, reflecting still strong and attractive pricing in reinsurance.
Alongside the firm terms, conditions and attachments, this is why catastrophe reinsurance remains so attractive at this time, despite now two years of softening from its highs.
You can analyse the Guy Carpenter Global Property Rate on Line Index using our interactive chart:
Next, the Guy Carpenter U.S. Property Catastrophe Rate on Line Index, which measures US property catastrophe reinsurance Rate-on-Line movements, on brokered excess of loss placements, and tracks the data back to 1990 as well.
This index for United States property catastrophe reinsurance rates and pricing had fallen by 6.2% at 1/1 2025, which was the first decline for this index since 2017 as well.
Now, following the 6/1 and 7/1 reinsurance renewals at the mid-year, the Guy Carpenter U.S. Property Catastrophe Rate on Line Index is down a little further at a 6.7% decline for 2025 so far.
For this US index of property catastrophe reinsurance rates, the Index is still up by a significant 93% since its low in the soft market year of 2017.
You can analyse the Guy Carpenter U.S. Property Rate on Line Index using our interactive chart:
Turning to the Asia Pacific region, Guy Carpenter’s APAC property catastrophe reinsurance rate-on-line index tracks the same property catastrophe reinsurance Rate-on-Line movements, on brokered excess of loss placements, for this part of the world.
In Asia Pacific (APAC), property catastrophe reinsurance rates fell by 7.2% at January 1st 2025. As we explained, the APAC index had been rebased by Guy Carpenter to show it had declined for full-year 2024 as well.
Including the April reinsurance renewal data, as of July this APAC property cat ROL index is now down by 15.9% in 2025.
Since its most recent low, this APAC index of property catastrophe reinsurance rates on line is now only up by 19.5% since 2018.
You can analyse the Guy Carpenter Regional Property Rate on Line Index using our interactive chart:
Guy Carpenter explains on its Indices, “Rate on line (ROL) is the cost of reinsurance per dollar of limit. The calculation of ROL is reinsurance premium as a percentage of limit. Each Guy Carpenter ROL index is a measure of the change in dollars paid for coverage year on year on a consistent program base. Each index reflects the pricing impact of a growing (or shrinking) exposure base, changes in buying habits and the way risk is measured, as well as changes in market conditions. Unlike risk-adjusted measurements, each index is not dependent on the model or method used to measure the amount of perceived risk in a program, which can vary widely.”
Overall, property catastrophe reinsurance rates-on-line are still sitting at attractive levels, especially for the United States and other regions, while APAC has clearly softened fastest but remains well above its last trough.
Combined with the changes to attachments and terms that have proven to be sticky, this can still make for a very profitable environment to enter the reinsurance market for capital providers and investors.
Read all of our reinsurance renewals coverage here.
Property cat rates down 8.1% globally, 6.7% in US, 15.9% in APAC in 2025: Guy Carpenter was published by: www.Artemis.bm
Our catastrophe bond deal directory
Sign up for our free weekly email newsletter here.