Reinsurance pricing declines moderated across most classes and geographies this month compared with the past three renewal seasons, according to Guy Carpenter.

Property catastrophe pricing fell 3.7% at January 1 compared with almost 9% a year earlier, according to the reinsurance broker’s Global Property Catastrophe Rate-on-Line Index.

“Although current renewals indicate the decline in reinsurance pricing is slowing, this moderation was not surprising and the more interesting development may be the continued evolution of coverage and solutions to meet changing client needs,” CEO Peter Hearn said.

“An innovative mindset is the key to success in today’s marketplace as the increasing complexity of risk brings new levels of uncertainty.”

Dedicated reinsurance capital increased 5% over the past year, as calculated by Guy Carpenter and ratings agency AM Best, while convergence capital increased 10%.

Insurance-linked securities pricing dropped as much as 30% in the fourth quarter.

Catastrophe bond issuance in the first quarter of last year was the highest in the market’s history, while in the next three months issuance fell to the lowest quarterly level since 2011.

“In response to this diminished pipeline, catastrophe bond providers responded with greater flexibility in coverage and significant decreases in price,” Guy Carpenter said.

“While it is too early to judge the broader impact of these changes, the last round of market-wide reinsurance price decreases were triggered in part by catastrophe bond competition.”

Significant global insured loss activity reached a four-year high last year, with insured loss up more than 50% from 2015.

Losses were spread throughout several regions and perils, with no single event driving the increase. Renewal pricing impacts were localised.