Insurers could face anywhere between flat and 5% price increases at the January renewals, according to S&P.
Reinsurers have been hit by hurricanes Harvey, Maria and Irma and the Mexican earthquakes - meaning it is a ‘capital event’ for reinsurers.
S&P expects third quarter catastrophe losses of more than $100bn for reinsurers.
The rating agency believes this will wipe out their annual earnings and could significantly hit their capital levels.
As a result, reinsurance price rises are likely to take place at the renewals. At best, primary insurers may see flat rates.
Previously, S&P had predicted flat to decreasing rates.
S&P said: “Prior to the recent catastrophic events, we expected a 0%-5% rate decline into 2018, but our view has shifted and our current sentiment is for 0%-5% of rate increase in global pricing at the upcoming Jan. 1 renewal.”
Europe and Asia are less likely to feel the feel force of the increases.