Willis Group has released a reinsurance review of the international market after the December renewals, saying rates in most places, including Australia, are flat or falling.

It says the biggest exception is US property business, where insurers with east coast or gulf coast windstorm exposures are pushing rates up.

In Europe (with the exception of wind-exposed northern European multi-territory covers where rates are firm), Asia, Australia, Latin America and those areas and classes of business of the US not prone to natural catastrophes, rates are flat or have fallen 5-10%.

Willis says rate increases have occurred in these regions due to reinsurers trying to bring December renewals of nationwide accounts in line with the mid-year 2006 pricing levels.

The report says reinsurance pricing also reflects the perception of increased volatility that is embedded in the latest property catastrophe models.

Another factor is reinsurers trying to recoup losses from the catastrophes of 2005.