After two years of significant rate increases, the property catastrophe reinsurance market is seeing a moderation in pricing at the June 1 renewals, according to reinsurance intermediary Howden Re. The firm said that average risk-adjusted property catastrophe reinsurance rates-on-line were 5% lower at midyear, compared to a year ago, with decreases typically ranging from -7.5% to -2.5%.

The reinsurance market is undergoing a period of adjustment, largely driven by a resurgence in dedicated capital in the property catastrophe reinsurance sector, according to the report. This capital now exceeds 2021 levels, leading to increased capacity at the top of property catastrophe reinsurance programs. As a result, risk-adjusted rates have seen reductions in the higher layers.

riskandinsurance.com - Property catastrophe reinsurance rates moderate at june renewals report