A Look at the Guy Carpenter Rate on Line Indexes at the January 2023 Reinsurance Renewal

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The Guy Carpenter Rate on Line (ROL) Index is a measure of the change in dollars paid for coverage year on year on a consistent program base. The index reflects the pricing impact of a growing (or shrinking) exposure base, evolving methods of measuring risk and changes in buying habits, as well as changes in market conditions. Unlike risk-adjusted measurements, the index is not dependent on the model or method used to measure the amount of perceived risk in a program, which can vary widely. 

Here we present Guy Carpenter’s updated Global, US and Continental Europe ROL Indexes.

The Guy Carpenter Global Rate on Line (ROL) Index increased 27.5%, primarily driven by pricing and attachment point adjustments in the US and Europe.

  •  This was the 6th consecutive year of increases, representing a cumulative total increase of ~65%.

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The Guy Carpenter US Rate on Line (ROL) Index increased 31.3% for January 2023 renewals. The average change in ROL was tempered by broad-based increases in retentions as programs moved further away from loss frequency.

The Guy Carpenter Continental Europe Rate on Line (ROL) Index increased approximately 30%, reflecting significant risk-adjusted price change and attachment point modifications.