July 1 property reinsurance renewals should continue to favor cedents as abundant capital leads to double-digit rate reductions and buyers explore alternatives.
Pockets of the market with unfavorable loss history, however, may buck this trend, according to a report Monday from Guy Carpenter, the reinsurance brokerage of Marsh.
The global property catastrophe rate on line (ROLs) index softened further from -12% at January to -16% at mid-year, according to Guy Carpenter.
Property rates were off in the low double digits a month ago at June 1 renewals.
Reinsurers are flush with capital and displaying “growing appetite,” Guy Carpenter said.
In addition to securing competitive pricing and terms on their property reinsurance programs, cedents appear to be looking at alternative structures including parametric coverages and sidecars
Casualty markets are seeing “nuanced outcomes,” Dean Klisura, president & CEO at Guy Carpenter, said in the report.
Marine reinsurance markets may be challenged in 2027 by an increase in the total loss reserve for the 2024 Baltimore bridge collapse from $1.5 billion to $2.8 billion, which will largely be borne by the reinsurance and retrocession markets, according to the report.