Monday, October 8, 2012
Global insurance rates increased by 1.4 percent in the third quarter, unchanged from the second quarter, according to a quarterly market briefing just released by Marsh.
Figures showing the typical renewal rate changes suggest that increases, although varying across lines of business, may be stabilizing, Marsh said.
The Marsh Risk Management Global Insurance Index, a composite of changes in insurance costs over a rolling 12-month period, also showed that prices across major lines of insurance increased by 0.9 percent in the third quarter.
In a press release Andrew Chester, CEO of Bowring Marsh, says:
While the global insurance market continues to be in a state of clear transition, the results for individual insureds vary significantly. With capacity and appetite for well-managed risk still strong, insureds are still able to achieve favorable results on renewal in many lines of business.â€
Data on the U.S. market showed that for the second quarter in a row, U.S. companies were more likely to experience rate increases than decreases in major lines of insurance.
Marsh makes three key points on the U.S. market:
– Although general liability rate increases accelerated in the third quarter, it is too soon to call it a trend. By contrast, workersâ€™ compensation rates stabilized.
– The majority of property insureds experienced rate increases in the third quarter. However, the lack of a significant hurricane restricted insurersâ€™ efforts to increase rates.
– In excess casualty lines, more clients are seeing rate increases in their excess liability programs compared to the last quarter. (Note: Marsh saidÂ that underwriters continue to show caution around particular risks. For example, fracking, cyber liability, and wildfires continue to be top concerns for excess liability underwriters in the U.S., with many tightening terms and conditions when these risks are involved.)