The cost of reinsurance against catastrophic property losses fell at the July 1 renewals, despite a rise in such losses during the first half of the year, according to Guy Carpenter.

The firm, a unit of Marsh & McLennan, said that a large influx of capital from third-party investors in the form of catastrophe bonds, sidecars and collateralized reinsurance activity, caused pricing in the capital markets to decouple, or beak away from levels set in the traditional reinsurance market for the first time. This, in turn, put downward pressure on the price of traditional reinsurance.

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