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More rates rising than falling – Holborn

03 January 2012

Reinsurance market rates have “increased by meaningful amounts” over the past six months, says a report from US reinsurance broker Holborn.

Read more: Holborn renewals

Reinsurance rate increases have outnumbered decreases over the past twelve months, as the market goes into renewals, according to a report from US reinsurance brokerage Holborn.

The broker estimates that 2011 is the first year since 2006 that the overall market has risen “significantly”, with renewals dragging on later than in most recent years.

“In many areas, market minimum rates on line increased by meaningful amounts between mid-year 2011 and January, 2012,” said the report from Holborn, entitled The 2012 Reinsurance Market: Changing Tides.

The report notes the role of US weather events – mostly the tornadoes...


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Poll

Catastrophe bond issuance was $4.3bn in 2011. How much new issuance will there be in 2012?

Less than $3bn
0%
$3bn-$4bn
36%
$4bn-$5bn
27%
$5bn-$6bn
9%
$6bn-$7bn
18%
More than $7bn
9%

Quote

If last year was the year of the cat, then this year could be the year of the debt crisis.

Mike Van Slooten, head of international market analysis at Aon Benfield