Prices in the property-catastrophe reinsurance market have started to come down, according to a new report by Howden Re, as more insurance companies return to the market and offer coverage again.

Near the June 1 renewal date, average prices for property-catastrophe insurance are about 10 per cent lower than last year.

Programmes that did not report any major losses saw the biggest drops, with some getting discounts of up to 15 per cent. Even insurance plans that had losses last year saw prices stay the same or fall slightly.

“Rate levels remain historically high but are now outpacing loss trends in many areas,” said Kyle Menendez, managing director at Howden Re North America.

“This is drawing more interest from markets, including Lloyd’s syndicates with previously cautious balance sheets looking to grow incrementally.”

Prices are still high compared to before the recent crisis in the reinsurance industry but they are now higher than needed for the amount of risk insurers are taking, according to the report. That is bringing more companies back into the market and helping buyers get better deals.

Reinsurers are also showing more interest in working with clients who buy multiple insurance products at the same time. These buyers are now more likely to get full support for their insurance programmes, rather than having to piece together coverage from different providers.

In Florida, meanwhile, changes to the law have made it harder for people to sue insurance companies or transfer their claims to others. These reforms seem to be holding up, which has made insurance companies more willing to cover Florida again, even though prices are still going down.

“Capital is now more abundant and increasingly diverse, yet it’s being deployed with discipline,” said David Flandro, head of industry analysis at Howden Re.

“At the top of towers, ILS are providing flexibility and competitive tension, marking a shift from crisis to calibration.”

The report suggests the market is beginning to recover from the disruption of the past few years.