The U.S. property catastrophe Rate on Line (ROL) index for January through July renewals was up 12 percent year-on-year. Pricing pressures have built through the course of the year: The mid-year data point represents a larger increase than what was recorded at January 1. Wind and wildfire-exposed programs once again played a prominent role in driving the index higher, with COVID-19 acting as an accelerating force.
As pricing rose, the willingness to deploy capacity constricted amongst the on-going pressures of climate change and social inflation and the significant reinsurance and financial market uncertainty as a result of COVID-19. Mid-year excess capacity was at its lowest point since 2012.