Reinsurance rates go up significantly as of 1 January 2023

For the 1 January 2023 renewals, reinsurers have raised the rates they charge to their cedants. This is the sharpest price increase since the 2001-2006 period.

This surge is notably attributable to the aviation class of business and to the grounding of several hundreds of aircraft on Russian soil, to the fallout of the Russian-Ukrainian conflict as well as to the higher cost of natural catastrophe claims which reached 115 billion USD in 2022.

According to broker Gallagher Re, the aircraft fleet reinsurance prices have climbed by 150-200% as at 1 January 2023, while for Howden, the premium rates for the natural catastrophes class of business have gone up by 37%.