
Chart: Guy Carpenter Global Property Catastrophe Rate-On-Line (ROL) Index – 1990 to 2021: The Global ROL index was up 4.5 percent year on year, at January 1. The index is a measure of the change in dollars paid for coverage on a consistent program basis and reflects the pricing impact of a growing (or shrinking) exposure base, evolving methods of measuring risk and changes in buying habits, as well as changes in market conditions.
Chart: Significant Insured Catastrophe Losses 2011 – 2020: Based on Guy Carpenter tracking, large losses generated near USD 80 billion of loss in 2020, an above-average number without considering COVID-19.
Rate Movements Moderated by Availability of Capacity as Negotiations Center on Pricing and Terms at January 1, 2021 Renewals: Price increases at the January 1, 2021 reinsurance renewals were moderated compared to initial expectations by abundant capital levels and an increased willingness on the part of reinsurers to deploy capacity in several sectors, according to Guy Carpenter.
Community-Based Catastrophe Insurance: Disaster Aid Financing or CBCI? A community-based catastrophe insurance (CBCI) program clearly defines before a disaster what type of support will be given to individuals. This facilitates better individual risk management and planning than reliance on uncertain aid. Also, the inclusion of a risk signal in a CBCI program — for example, via a risk reduction surcharge — requires and supports raised awareness of the risk issue among community members.
2021 Global Risks Report: A Focus on Climate Change: As climate change, the increase in natural catastrophe events and the COVID-19 pandemic alter the contemporary risk landscape, there is now an opportunity for governments to partner with the (re)insurance industry and put its expertise to work.
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Video: Rate Change Dynamics Heading into 2021: Lara Mowery, Global Head of Distribution at Guy Carpenter, highlights how renewal discussions are focusing on the offsetting trends of underlying rate changes on casualty business and loss activity that has occurred in the past.
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