Email: Password:
Forgot Password

News Archive

Back to List Back to list
Previous Article Next Article

Pricing on regional lines

10 Dec 2017

Asia-Pacific reinsurance buyers face a lower likelihood of significant price rises in next year’s renewal season than their catastrophe-hit US counterparts, according to Guy Carpenter.

The reinsurance broker bases its analysis on price movements after 2005 and 2011, which – like this year – suffered catastrophe losses above $US100 billion ($131 billion).

“In 2005, the year of [hurricanes] Katrina, Rita and Wilma, price increases were significant for US buyers, but not so for buyers in the Asia-Pacific region,” Guy Carpenter says.

“The differential can be explained by the fact 84% of 2005 losses stemmed from events in the US, whereas less than 2% came from the Asia-Pacific region.

“For [this year], the split is more likely to resemble 2005 than 2011.”

Guy Carpenter says price movements in both years indicate the market “was able to distinguish between loss-generating and non-loss-generating geographies”.

More than half of 2011 insured losses were in Asia-Pacific, Guy Carpenter says. Other research shows the earthquake and tsunami in Japan and New Zealand’s Christchurch earthquake accounted for two-thirds of overall losses that year.

Most reinsured losses in the Asia-Pacific region this year arose in Australia, which suffered about $1.5 billion in insured losses from Cyclone Debbie.


 - insuranceNEWS

Previous Article Next Article


Professional IQ

Professional IQ College

Workshops, Online courses, webinars and Qualifications. For upcoming events         click here

Latest Papers:

Closing the Gap - Insuring your business against evolving cyber threats

iNavigator iNavigator Media Center
Provides access to a wide range of industry related media resources

Covernote Cover Note
IBANZ quarterly magazine for the latest on the intermediated insurance market.

Gary's Blog Gary's Blog
Comment on current issues.

© Copyright IBANZ, all rights reserved. Private information collected for this website is governed by our Privacy Policy. Read our Terms & Conditions
Powered by streamSWEET CMS