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Reinsurers provide insurance for insurers and the prices they
agree at the beginning of each year set the trend for the cost
of insurance for the next 12 months.
Earthquakes in Turkey and Syria, wildfires in Hawaii and other
natural catastrophes caused an estimated $100 billion in insured
losses in 2023, down from 2022 but still well above normal,
reinsurer Swiss Re estimated last month.
U.S. property catastrophe reinsurance rates rose by as much as
50% on Jan. 1, 2024 for policies previously hit by natural
catastrophes, while such rates doubled in Turkey, Gallagher Re
said.
But reinsurance rates were unchanged for some clients who were
not exposed to natural disasters last year, the report showed.
"It's quite nuanced and much more differentiated by client than
it was this time last year," Tom Wakefield, global CEO of
Gallagher Re, told Reuters.
Global property catastrophe reinsurance rates rose by as much as
30% on Jan. 1 for policies previously hit by losses, reinsurance
broker Guy Carpenter, part of Marsh McLennan, said in a separate
report last week.
The conflicts in Gaza and Ukraine have focused reinsurers'
attention on war, political violence and terrorism policies, the
Gallagher Re report said.
Political violence insurers are reconsidering the breadth of
their cover in potential conflict hot spots, Reuters reported
last month.
Aviation reinsurance rates rose by as much as 25%, the Gallagher
Re report said.
In the marine market, war risk premiums for ships to enter the
Red Sea have risen tenfold since the outbreak of the
Israel-Hamas conflict, Wakefield said.
(Reporting by Carolyn Cohn. Editing by Jane Merriman)
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