The Global Rate-on-Line Index, a measure of change in catastrophe premium dollars paid year-on-year, increased just 1.1% despite back to back years of major loss accumulation, according to Guy Carpenter & Co. LLC.

The fourth highest annual catastrophe loss year on record also raised questions over pricing adequacy, underwriting strategy and the amount of capital available, Guy Carpenter said in its reinsurance report Monday.

As for contributions to the index from the two largest sectors, the United States increased 2.6% and Europe/Middle East/Africa decreased 2.5%, with a “wide degree of variation within these results depending on account specifics,” Guy Carpenter said.

Property losses put pressure on other lines.

“While upward movement in property pricing was limited to localized activity, the effects on profitability from losses in this sector put pressure on other lines to achieve or maintain self-sustaining levels. As a result, in addition to increases on loss-impacted business, increases on some non-loss-impacted casualty and specialty business were achieved,” Guy Carpenter said.

Abundant capacity remains an issue for the industry and helped keep price increases in check, according to Guy Carpenter.

“As the events of 2018 unfolded and 2017 losses continued to develop, increasing amounts of collateralized capital were lost or restricted by trust agreements, Guy Carpenter said, adding, “but capacity is likely to remain plentiful for risks that can be adequately measured and priced.”

This could lead to issues concerning adequate pricing, according to Guy Carpenter’s statement.

“While the impact on January 1 renewals overall was muted, this was a more challenging environment for some segments than it was a year ago. The industry is dealing with questions of pricing adequacy and where and to what degree adjustments might be needed. Finding equilibrium was not always easy and questions remain coming out of this renewal,” David Priebe, Guy Carpenter vice chairman, said in the statement.

The report follows a Jan. 1 renewal cycle that saw only modest price increases.