Some European reinsurance companies raised property reinsurance rates by over 50 per cent starting January 1 this year when renewals were due following record insured losses last year being suffered by the companies of the region because of natural disasters like floods and storms, showed a report by broker Gallagher Re.
Insurers are insured by reinsurers and any rise in the rates of reinsurance is most often passed onto customers of the insurers.
Insured losses of more than 12 billion euros ($13.55 billion) were suffered by insurance companies last year because of flooding incidents in Germany and other countries including Austria, Belgium and Switzerland, showed the data compiled by Gallagher Re in the report which examined insurance renewals on one of the most important dates in the reinsurance calendar.
Heavy hail and other storm damage were also suffered by Europe last year.
Rates of reinsurance were increased by between 15 per cent and more than 50 per cent in areas hit by natural catastrophes, while same rate rises were noted in Europe as a whole. Similar rates rose between 20 per cent and over 50 per cent in Switzerland.
"Reinsurers have managed to achieve further improvements in pricing to build on the increases of the past 18 months," said James Kent, global CEO of Gallagher Re.
Gallagher Re said that their exposure to the region was also cut down by some reinsurers.
Reinsurance rates rose by between 10 and 25 per cent in the United States – particularly for those areas which were hit by extreme weather events last year, whereas the country as a whole was hit by a major winter storm as well as wildfires last year.
Reinsurer Swiss Re said last month that the losses last year globally to reinsurers was $105 billion because of natural catastrophes, which was the fourth highest loss ever for the industry.
According to a separate research released this week by reinsurance broker Guy Carpenter, global property catastrophe reinsurance rates increased by 10.8% on average this year.
(Source:www.usnews.com)
Insurers are insured by reinsurers and any rise in the rates of reinsurance is most often passed onto customers of the insurers.
Insured losses of more than 12 billion euros ($13.55 billion) were suffered by insurance companies last year because of flooding incidents in Germany and other countries including Austria, Belgium and Switzerland, showed the data compiled by Gallagher Re in the report which examined insurance renewals on one of the most important dates in the reinsurance calendar.
Heavy hail and other storm damage were also suffered by Europe last year.
Rates of reinsurance were increased by between 15 per cent and more than 50 per cent in areas hit by natural catastrophes, while same rate rises were noted in Europe as a whole. Similar rates rose between 20 per cent and over 50 per cent in Switzerland.
"Reinsurers have managed to achieve further improvements in pricing to build on the increases of the past 18 months," said James Kent, global CEO of Gallagher Re.
Gallagher Re said that their exposure to the region was also cut down by some reinsurers.
Reinsurance rates rose by between 10 and 25 per cent in the United States – particularly for those areas which were hit by extreme weather events last year, whereas the country as a whole was hit by a major winter storm as well as wildfires last year.
Reinsurer Swiss Re said last month that the losses last year globally to reinsurers was $105 billion because of natural catastrophes, which was the fourth highest loss ever for the industry.
According to a separate research released this week by reinsurance broker Guy Carpenter, global property catastrophe reinsurance rates increased by 10.8% on average this year.
(Source:www.usnews.com)
