Evaluating the pricing behavior for national and regional renewals excluding Florida at June 1 and July 1, we see that the general market response in both groups was fairly consistent. Pricing for lower layers increased less significantly than upper layers. In both cases, there was some additional pressure on upper layer pricing due to demand for those limits. In particular with regional writers, there was an up tick in minimum capacity charges that had been pushed to fairly low levels in recent years.
The charts below represent the relationship between the rate-on-line (the amount charged) and the loss-on-line (the amount of risk) for the programs renewing at June 1 and July 1, excluding Florida-only renewals, using RMS v9 to measure loss-on-line. Upper layers have lower loss-on- line (the left side of the charts). Note that, while visually, the movement in the upper layers appears to be less significant than the lower layers, the percentage movement is greater, as the overall pricing is significantly less than the lower layers.