Reuters reports today that the cost of reinsurance has fallen due to another relatively disaster-free year.  Rates for property catastrophe reinsurance, which typically cover hurricanes and earthquakes, are down 9 percent.  The U.S. subprime mortgage market crises has not impacted reinsurers.

     The lack of natural disasters have allowed reinsurers to obtain large profits for the second year in a row, and the pressure to cut prices has intensified.

     The Reinsurance rates are important to consumers because they have a major influence on the cost of insurance at the local level.