Guy Carpenter Reinsurance Market Review 2010

Reinsurance rates for most lines of business decreased on the January 1, 2010 renewal. The Guy Carpenter World Catastrophe Rate on Line (ROL) Index decreased by 6 percent in reaction to a swift and substantial recovery in the capitalization of the reinsurance sector. The combination of the rally in investment markets, much reduced catastrophe loss activity in 2009 and recessionary effects on demand for
direct and reinsurance programs resulted in an excess of supply and increased competition. Movements in pricing occurred against a background of exposure adjustments, model revisions, program changes and other developments.

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