Reinsurance rates continue to decline, despite significant cat losses

Significant catastrophe losses in 2010 Q1 failed to halt declining reinsurance rates, according to Aon Benfield’s June 1 Renewals Update report.
Reinsurance capital rose by 8% in Q1 to $434 billion, surpassing record levels set in 2007 before the global financial crisis took hold, despite loss events such as the earthquake in Chile and Windstorm Xynthia in Europe.
For Florida programs, which represent the majority of activity at June 1 renewals, reinsurers have experienced positive underwriting results for the past four years due to minimal reinsured catastrophe events; as a result, Florida rates declined on average by 10% to 15%, according to the report.