Abundant reinsurance capital and minimal losses led to prices dropping across almost all lines and regions at the July 1 renewals.

Reinsurance broker Guy Carpenter reports some double-digit price reductions.

“In Australia and New Zealand, July 1 renewals continued to show significant decline in rates due to oversupply of capacity following a benign year for catastrophe losses – despite some uptick in ultimate losses from the 2010/11 New Zealand earthquakes.”

This enabled insurers to expand cover, it says in a report on the global market.

MD and Head of Global Property Specialty Lara Mowery says a variety of lines experienced better terms and abundant capacity, and clients could get cover tailored to their needs.

She says outstanding capital stands at a record high of $US20.8 billion ($22.12 billion).