(Bloomberg) — Reinsurance prices declined on policies renewed for July 1 amid low losses and as record levels of catastrophe bonds drove an oversupply of capital, according to Guy Carpenter & Co. LLC.
There were “price decreases across virtually all geographies and lines of business, many in the double-digit range,” the reinsurance broker of Marsh & McLennan Cos. said in a statement today.
The rates reinsurers charge customers are under pressure as low interest rates push investors, such as pension funds searching for above-average returns, into their market. Below- average catastrophe claims have also left the industry, which shoulders risks for primary insurers in return for a share of the premiums, with abundant funds.
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