US reinsurance rates have continued to show moderate declines in the mid-year renewal period, according to Guy Carpenter.

“The average decrease on US property catastrophe accounts was slightly greater at June compared with June [last year], but still moderate compared with the double-digit decreases in prior years,” Global Head of Property Lara Mowery told insuranceNEWS.com.au.

“The trend overall is continued moderate price decrease.”

Guy Carpenter updates its global rate on line (ROL) index each year at January 1, while the US index is also updated mid-year to reflect the roughly 50% of catastrophe renewals that occur from April to July.

“The average risk-adjusted pricing movements that take into account changes in program exposures were aligned between January and the rest of the year,” Ms Mowery said.

“However, the ROL index decreased slightly more in the latter half of the period compared with January, bringing the January-through-July decrease to 3.3%, versus 2% at January 1.”

Capacity remains plentiful for the most part across all classes and geographies, while in property it has increased notably over last year, according to Guy Carpenter.

“Loss-impacted programs experienced rate pressure as the market sought adjustments more in line with results, particularly in the life and health sector,” Ms Mowery said.

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