Jan. 1 renewals observed increase in property catastrophe ROL – Guy Carpenter
Jan. 1 renewals observed increase in property catastrophe ROL – Guy Carpenter | Insurance Business America
Reinsurance
Jan. 1 renewals observed increase in property catastrophe ROL – Guy Carpenter
Outcomes were affected by regional loss activity
Reinsurance
By
Kenneth Araullo
Guy Carpenter has released its latest Global Property Catastrophe Rate on Line (ROL) Index report.
As of the January 1, 2024, reinsurance renewal period, the Guy Carpenter Global ROL Index showed an estimated increase of 5.4% compared to the previous year.
The report details notable regional trends, with the United States index experiencing a 5.25% rise, while Europe’s index saw a slightly higher increase of 7.6%. Guy Carpenter attributed these variations to factors such as regional loss activity, adjustments in structure, and continued evaluation of pricing adequacy in the market.
The Guy Carpenter ROL index serves as a gauge for year-over-year changes in the cost of insurance coverage, based on a consistent program base. The index is designed to reflect various influences on pricing, including changes in the size of the exposure base, advancements in risk measurement methodologies, shifts in purchasing behaviors, and overall market conditions.
Notably, the ROL index is independent of risk-adjusted measurements, which can vary significantly depending on the models or methods used to assess the perceived risk within a program.
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