Business insurance

U.S. Property Reinsurance Renewals Show Strong Increases: Gallagher Re

According to a report released Friday by Gallagher Re, the reinsurance business of Arthur J. Gallagher & Co.

Reinsurance renewals in the United States nationwide have seen rate increases ranging from 5% to 15% for no-loss accounts to 20% to 40% for catastrophe-exposed and loss-affected accounts.

In Florida, increases started at 5% to 15% for top no-loss business and climbed to 20% to 50% for catastrophe-exposed loss accounts.

Excess risk and catastrophe capacity have become more constrained as some traditional reinsurers in London and Bermuda have pulled out of property and catastrophe reinsurance, Gallagher Re said.

Increases in losses were less pronounced, with general liability up from 5% to 15% with losses and down from 5% to 5% without emerging losses. Rates have increased to 25% in health liability with claim, but only from 0% to 5% without claim.

Automobile liability in the US increased 25% with emergence of loss and 10% without loss, and professional liability in the United States fell from 5% to 5% increase without loss; data on increases in claims emergence were not provided.

Reinsurer interest in U.S. property and casualty lines remains stable, but concerns are growing about certain loss dynamics, including frequency of large losses, rising verdicts and settlements, litigation funding and medical inflation, according to the report.

James Kent, global CEO of Gallagher Re, said in a statement with the report that while the inflation discussions were detailed and technical, “…reinsurance buyers were able to acquire most of the cover that they wanted, if not at the prices they had hoped for.”