Underwriters must hike property cat rates by 50% to restore profitability

U.K.-based Ernst & Young Global Ltd. said property catastrophe reinsurance rates should rise 50% during the 2023 January renewals, especially in the U.K., if insurers and reinsurers want to offset the rising claims costs and restore profitability, Artemis reported. This suggested rate hike comes as underwriters are increasingly exposed to climate change-related risks and inflationary pressure.