By Rebecca Delaney
July 10 - (The Insurer) - Guy Carpenter's global rate-on-line (RoL) index has dropped for the second consecutive half-year, falling by 8.1% year on year.
This follows a drop of 6.6% at January 1, 2025, which was the first decrease since 2017.
RoL is the cost of reinsurance per dollar of limit, calculated by reinsurance premium as a percentage of limit. The RoL index measures the change in dollars paid for coverage year on year on a consistent program base.
Unlike risk-adjusted measurements, the index is not dependent on the method used to measure the amount of perceived risk in a program.
Placements in the year to date have experienced reductions in RoLs across all major regions.
For the U.S., the index decreased by 6.7% at July 1, having dropped 6.2% at the January renewals.
The decrease at the start of the year followed increases of 5.25% and 31.3% at the January 1 renewals in 2024 and 2023, respectively.
In the Asia Pacific region, the RoL index decreased by 15.9% for placements in the year to date through July 1.
The Asia Pacific RoL index declined by 7.2% at this year's January renewals, which followed a modest reduction for the region last year.