Prices for reinsurance renewal coverage on January 1 will increase for certain property catastrophe risks despite the quiet 2006 season, according to a Standard & Poor's report.
The rating firm said pricing for renewals at the beginning of this year did not reflect new catastrophe models that were released showing greater potential losses from storms and were not priced in those rates. "However, even in U.S. peak zones, increases should be in the single digits," the report said.
After January, insurers will seek to pay less for reinsurance to make up for the losses that did not happen this year, or if catastrophe levels are projected to be low in 2007 and beyond. "Casualty pricing in general should remain flat, but should decline moderately in certain lines," the report said.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
