LONDON (Reuters – European property reinsurance rates increased by over 50% after record losses in the last year due to natural catastrophes.

Insurance companies are protected by their reinsurers. Insurers often pass on reinsurance rate increases to insurers.

Gallagher Re stated that flooding in Germany, Austria, Belgium, Switzerland and Switzerland in July resulted in over 12 Billion Euros ($13.55 Billon) in insured losses. This was according to the Gallagher Re report on renewals, which is one of the most crucial dates on the reinsurance calendar.

Last year, Europe was also hit by heavy hailstorms and other severe storms.

Reinsurance rates rose in Germany by 15% to more than 50% in areas affected by natural disasters. This is in line with European rate increases. Such rates rose by 20% to more than 50% in Switzerland.

James Kent (global CEO, Gallagher Re), stated that insurers have been able to improve pricing in order to continue the price increases over the past 18-months.

Gallagher Re stated that some reinsurers reduced their exposure to this region.

Last year, the United States was struck by major winter storms as well hurricanes and tornadoes. Rates for areas affected by these events rose from 10 to 25%.

Reinsurer Swiss Re (OTC) reported last month that global insured losses reached $105 Billion due to natural disasters. It was the fourth largest annual loss on record.

Guy Carpenter, a reinsurance broker in the United States, reported that worldwide property catastrophe rates rose 10.8% this year.

($1 = 0.8857 euros)