Guy Carpenter has released its latest Global and Regional Property Catastrophe Rate on Line (ROL) Indices.
According to Guy Carpenter’s figures, the Global ROL Index fell 6.6% compared to 2024, while the US index decreased 6.2%, the European index declined 5.3%, and the APAC index dropped 7.2%. Guy Carpenter noted that these results will be updated at key renewal dates through 2025.
ROL is the cost of reinsurance as premium expressed as a percentage of limit. Each index gauges year-over-year changes in coverage costs on a consistent program base, reflecting shifts in exposure growth, buying habits, risk measurement, and market conditions.
Because these indices are not risk-adjusted, Guy Carpenter noted that they do not rely on any specific model or method for quantifying perceived risk, which can differ considerably across programs.
Meanwhile, the firm’s 1.1 renewal report observed that non-loss-impacted property catastrophe renewals recorded risk-adjusted reinsurance rate decreases of 5% to 15% at January 1, although pricing outcomes varied by region, attachment point, and reinsurer views on price adequacy.
The report noted that property catastrophe renewals were consistently oversubscribed, with reinsurer appetite increasing by 10% to 15%, while demand rose by about 5%. Rate reductions and added capacity, the report noted, reflect strong reinsurer appetite driven by another profitable year in 2024.
Attachment points have played a significant role in reinsurer outcomes. In 2024, global industry catastrophe losses amounted to nearly $130 billion, while the estimated reinsured share stood at 14%, down from 20% before 2023. Higher catastrophe attachment points at recent renewals have contributed to a shift in the reinsured share of losses.
Supplemental options such as frequency protection and retention buydowns have served as tools for cedents looking to manage capital and volatility.
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