Guy Carpenter: US P/C rates levelling off

Guy Carpenter has released its full year US Property Catastrophe Rate on Line (ROL) Index, covering renewals between January and July, the vast majority of annual activity.  

The Guy Carpenter US ROL Index increased by 1.2% compared to 2023, which is a decrease from the +5.4% index value at January 1, and reflects the impact of decreased pricing at mid-year.  

While pricing came down on a risk-adjusted basis, the flattish index value reflects stable retentions driving greater catastrophe exposure into programs, Guy Carpenter said. Dollars spent increased on average but not quite to the same degree as exposure. Guy Carpenter added the caveat that the analysis is ongoing and that additional refinements are possible.

The Guy Carpenter 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.

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