Aon predicts cat rates to continue slide in ’08

At current pricing levels, and given the current capitalization of the property and casualty reinsurance market, Aon Re Global estimates it would require a ground-up property catastrophe occurrence loss in the range of between US$30-50 billion to change the current softening of property catastrophe reinsurance rates, terms and conditions.

Aon Re Global’s market expectations for the June 1 and July 1 renewals for Canada include a -7.5% to -12.5% rate on line change, a capacity change of 10% to 15% and a stable retention change.