Reinsurance renewals up in April: Guy Carpenter

Global reinsurers have raised rates in key regions and lines of business after huge catastrophe losses in 2011.

Asia-Pacific and Japan, in particular, experienced higher reinsurance pricing in property catastrophe and casualty lines at the “significant renewal date” of Apr. 1, according to a recently released Guy Carpenter briefing report.

“The April 1 renewal period was. . . challenging,” Guy Carpenter noted. “While capacity was available, it was offered at a higher price and often with tightened terms and conditions. New capacity did enter the market from a small number of new entrants but Asia-based reinsurers were capacity constrained.”

It added “the price increases were no surprise to most of the marketplace due to the events of the past year and a global trend of overall market hardening.”