Guy Carpenter reports Loss-Free Property Cat rates decrease by 5%-15% as reinsurer demand increases.

[Chris]

The January 2025 reinsurance renewals reveal an intriguing shift: loss-free property catastrophe accounts saw rate cuts of up to 15%, driven by a 10%-15% boost in reinsurer appetite, while demand rose 5%. Meanwhile, loss-affected layers faced up to 30% rate hikes. With reinsurers enjoying strong profits and increased capital, higher attachment points have lowered their exposure to global catastrophe losses.

Is this a sign of a sustainable balance in the market, or will the disparities between loss-free and loss-affected accounts create new challenges for reinsurers and cedants alike?

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