Moderated risk-adjusted property-catastrophe reinsurance pricing reflects shifting market dynamics at 1st June


After notable rate increases in 2022 and 2023, Howden Re has observed a moderation in the property-catastrophe reinsurance market pricing at 1.6 2024, with average risk-adjusted property-catastrophe reinsurance rates-on-line 5% lower within a typical range of -7.5% to -2.5%.

Key takeaways from 1 June renewal period

  • Risk-adjusted property-catastrophe rate-on-line 5% lower on average
  • Dedicated sector capital now exceeds 2021 levels
  • A notable increase in insurance-linked securities (ILS) market activity with over USD 3 billion of issuance covering Florida perils year-to-date

Wade Gulbransen, Howden Re Head of North America, commented, “It is crucial that our clients secure optimal coverage in this rapidly evolving landscape. This means not only finding capacity, but also ensuring it aligns with their risk profiles and financial objectives. Our focus remains on providing innovative thinking alongside dynamic placement strategies to meet these challenges head-on.”

David Flandro, Head of Industry and Strategic Advisory at Howden Re, added, “The reinsurance market is at a critical juncture. While the recovery of dedicated capital and increased capacity signal a potential softening of rates, the forecasted active hurricane season and other market pressures could counteract these trends. Strategic adaptability and expert guidance are essential in navigating these dynamics.”

Howden Re is committed to closely monitoring these developments and working with clients to navigate the evolving market landscape.

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