1/1 RENEWAL SEES FURTHER REDUCTION IN RATES FOR PROPERTY PROGRAMMES

Rates on property programmes fell across most regions as capital remained plentiful and catastrophe losses during 2015 remained benign, Willis Re has reported. The reinsurance broker said risk-adjusted rates for European programmes were down 5% to 12.5% for loss-free catastrophe accounts compared with last year. For catastrophe-impacted programmes, the decrease was up to 2.5%. Willis Re said pricing on loss-free Asian programmes fell between 10% to 15% on a risk-adjusted basis. “Buyers have yet again looked to their reinsurer partners for support in terms of reduced prices and broader coverage to help manage their portfolios as original rates have fallen across most markets and classes," Willis Re said. The broker said the January 1 introduction of Solvency II had led to a slight increase in reinsurance buying habits at the 1/1 renewal. “In some cases companies have opted to buy additional reinsurance cover to mitigate any increase in the required capital as calculated under Solvency II,” James Vickers, chairman of Willis Re International, said.