Howden Tiger reports a significant increase in reinsurance rates, with risk-adjusted property-catastrophe pricing up 33% on average at June 1 renewals, reaching its highest level since inception.
The rate increase fell within the range of 25% to 40%, with variations depending on the specific layer. This follows a 25% increase in rates observed in 2022, bringing the index to its highest level since its establishment.
The rise in pricing was driven by persistent low levels of capital relative to risk, along with a combination of global and local pressures. Hurricane Ian had a significant impact on losses for insurers, leading to varying effects on rates.