Market pressures on the risk sector at July 1 renewals continued to drive price decreases across virtually all geographies and lines of business, many in the double-digit range, according to global reinsurance broker Guy Carpenter.

“While the impact on property renewals, especially in the US, has been well documented, a wide variety of lines including marine, aviation, casualty, workers’ compensation and healthcare experienced improved terms and abundant capacity,” Lara Mowery, managing director and head of global property speciality for Guy Carpenter, said in a statement yesterday.

“As a result, we have seen continued discussions around the expansion of terms and flexibility in adapting solutions to provide more client specific tailored coverage that extend well beyond property.”

And as loss activity remained minimal, reinsurers added to surplus capacity, and additional capital continued to come into the market via alternative sources.

According to the report, the growth of alternative capital and expansion of its range of offerings — “continues to impact the marketplace in a meaningful way.”

The report stated: “Catastrophe bond issuance was extremely strong through the first half of 2014, with a record-setting half-year issuance of $5.7 billion of 144A property catastrophe bonds. Total risk capital outstanding now sits at an all-time high of $20.8 billion (excluding private placements). In fact, even with no further activity for the remainder of the year, 2014 would still register as the fourth largest year in terms of new issuance.

“With an abundance of alternative capital, catastrophe bond pricing continues to decline. In addition, greater flexibility in the market has facilitated first-time achievements in 2014, including a European windstorm bond utilising an indemnity-based trigger and the first ever Japanese yen denominated bond,” said David Priebe, vice chairman of Guy Carpenter.

“Alternative capital is also extending its market impact through increased interest in non-catastrophe lines of business, including entities specifically focused on writing more stable business but with a more aggressive investment strategy.”

Over the last three prior years, fluctuating conditions between January 1 and July 1 resulted in midyear market movement. In 2014, renewal behaviour returned to a more historical norm as the market remained fairly consistent through the first six months of the year. Price decreases averaged in the mid-to-high teens and changes in coverage, more diverse product offerings and an increase in multiyear options enabled companies to better tailor their coverage to meet their risk management needs.