LONDON, Jan 4 (Reuters) – Some European property reinsurance charges rose by greater than 50% at Jan. 1 renewals after the area suffered file insured losses final yr from pure catastrophes corresponding to floods and storms, a report by dealer Gallagher Re confirmed on Tuesday.
Reinsurers insure the insurers, and reinsurance price rises are sometimes handed onto insurers’ prospects.
in July in Germany and different nations together with Austria, Belgium and Switzerland induced over 12 billion euros ($13.55 billion) in insured losses, Gallagher Re stated within the report on renewals on one of the vital necessary dates within the reinsurance calendar.
Europe additionally suffered heavy hail and different storm harm final yr.
In areas hit by pure catastrophes, reinsurance charges in Germany rose by between 15% and greater than 50%, with the identical price rises in Europe as an entire. In Switzerland, such charges rose between 20% and over 50%.
“Reinsurers have managed to realize additional enhancements in pricing to construct on the will increase of the previous 18 months,” stated James Kent, world CEO of Gallagher Re.
Some reinsurers reduce their publicity to the area, Gallagher Re stated.
In the US, which final yr suffered a significant winter storm in addition to wildfires, hurricanes and tornadoes, charges rose 10-25% for catastrophe-hit areas.
Pure catastrophes induced world insured losses of $105 billion final yr, the fourth highest on file, reinsurer Swiss Re stated final month.
International property disaster reinsurance charges rose by 10.8% on common this yr, reinsurance dealer Man Carpenter stated in a separate report this week.
($1 = 0.8857 euros)
Reporting by Carolyn Cohn in London and Noor Zainab Hussain in Bengaluru; modifying by Barbara Lewis