New equity research from Jefferies highlights that in the global property-catastrophe reinsurance market, prices have seen an additional increase of 3% on a risk-adjusted basis, following a 37% rise last year.
The trend suggests continued robust demand in the industry, with margins improving modestly despite already high prices, without any apparent negative impact on volumes. Notably, there seems to be no sign of deflation across various lines.
According to a recent report by Howden, the increase in global property-catastrophe prices can largely be attributed to insurers’ exposures growing, fueling demand for reinsurance. This demand is supported by stable pricing, encouraging cedants to purchase more coverage for tail risks. Gallagher Re’s report aligns with this, indicating that most loss-free contracts saw price increases ranging from 0% to 10%.
