A year after the onset of COVID-19 disrupted reinsurance renewals, market stabilization and ample capacity in most lines and regions resulted in balanced mid-year 2021 outcomes. However, market stressors driving shifts in recent loss activity and evolving risk quantification created firmer market conditions in some segments. The first six months of 2021 were marked with firming pricing trends driven by continued escalation of social inflation coupled with the expected impact of COVID-19 losses. However, mid-year placements indicated moderating increases in average pricing due to the strong capital position of the sector and general economic rebound. The Guy Carpenter U.S. Property Catastrophe Rate on Line Index increased by six percent for January through July renewals – approximately half of the increase experienced over the same period in 2020.
Looking ahead, the market will continue to monitor how COVID-19 claims are resolved while also turning attention to evolving risks including cyber and climate change. Social inflation is an ongoing issue the market continues to analyze to determine if elevated frequency and severity is the new norm or if we will return to lower levels of loss trend. Click here to register to receive e-mail updates >>