Cost For CAT Ins Reported Rising

Paragon Reinsurance Risk Management Services of Minneapolis announced today that its catastrophe insurance price index had risen for the first time in six years. The Catastrophe Price Index for January 1 renewals rose to 1.730, which is 7.2 percent above the relative price of renewals at Jan. 1, 2000, the company said. According to Paragon, this marks the first annual index increase since the level was 2.37 in 1994 when catastrophe prices peaked after Hurricane Andrew and the Northridge earthquake. The index figure was 1 in 1984. Catastrophe Price Index is a relative measure of composite domestic U.S. property catastrophe insurance prices. The index compares the average market price at each renewal date with the average market price of one year prior.