Guy Carp: Reinsurance pressure continues as rates drop

Reinsurance rates continue to fall as increased competition from alternative markets, strong reinsurer balance sheets and low loss experiences continue.

According to Guy Carpenter’s June 2014 renewal briefing, terms and conditions also came under pressure and multi-year transactions continued to be an area of investigation, while traditional reinsurers sought to protect their market share and alternative providers looked to utilise growing funds.

“Assessing the outcome of the June 1, 2014 renewal, it is clear that the pace of the pricing decline observed in 2013 has not relented. Reinsurance buyers received significant rate decreases for both Florida and non-Florida renewals, compounding 2013 decreases,” said Lara Mowery, global head of Property Specialty at Guy Carpenter.