At the January 2025 reinsurance renewals broking group Howden estimates that risk-adjusted pricing for property catastrophe treaty business declined by 8%, while retrocession pricing fell further by 13.5%.
The company titles its latest renewals report “Past the Pricing Peak”, saying that a new phase of the market cycle ushers in price reductions and a renewed focus on innovation.
Howden says that the availability of deployable capacity in the marketplace signals this new phase in the reinsurance market cycle, which it believes marks “a significant shift from the recent past”.
More favourable supply dynamics have become increasingly evident, culminating in capital playing a “pivotal role in the 1 January 2025 reinsurance renewals, fostering competition that led to risk-adjusted rate reductions in several areas,” the broker explained.
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