Global reinsurance prices fall despite big catastrophe losses- JLT Re

JLT Re’s global property-catastrophe reinsurance index fell 1.2 percent at the key Jan. 1 policy renewal season, the broker said on Wednesday, dashing the industry’s hopes of higher reinsurance premiums after the second straight year of big losses. Reinsurance prices have fallen in recent years as traditional reinsurers face competition from new players and products such as catastrophe bonds, but industry giants were hoping for higher rates after facing the most costly quarter on record in 2017. “Despite another active catastrophe year in the United States, property-catastrophe rate changes were modest,” said Ed Hochberg, chief executive officer of JLT Re in North America.