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Reinsurers’ 2023 pricing surge and higher attachment points lift results
JP Morgan said 2023 reinsurance pricing rose by nearly 30% and average attachment points increased as much as 40%, helping reinsurers outperform industry catastrophe trends.
Since the turn of the reinsurance market in 2023, reinsurers have benefited from improved economics, according to JP Morgan’s “Love Actuary” report cited by Reinsurance News.
The report points to a sharp pricing jump in 2023, with reinsurance premiums up nearly 30%, along with structural changes in reinsurance programmes that shifted risk economics in reinsurers’ favor. It said attachment points rose on average by up to 40%, which can increase reinsurers’ protection from earlier layers of losses.
At the same time, the long term path for insured catastrophe losses has continued upward, driven by climate patterns and macro factors including inflation. The rolling 10 year average for insured catastrophe losses has climbed to about $100 billion, while the Average Annual Loss baseline used in modelling has risen from $81 billion in 2020 to just over $150 billion for 2025.
JP Morgan’s analysis also compared expected catastrophe baselines against actual outcomes, finding that 2020 and 2023 were broadly in line with expectations, while 2021, 2022 and 2024 saw higher than expected insured losses at the industry level. It added that insured catastrophe losses in 2025 alone fell short of that year’s expected baseline.