Global insurance rates continued to firm on average in the first quarter of 2013, following a trend established over the past 18 months, according to figures from Marsh’s latest global insurance market quarterly briefing.
In the US, most major insurance lines saw rate increases of two percent to four percent. Outside the US, rates overall decreased by an average of approximately one percent.
According to the Marsh Risk Management Global Insurance index, this is the fifth consecutive quarter of a global average rate increase.
Overall, rates renewed with an increase of 0.3 percent in the first quarter of 2013, following an increase of 1.2 percent in the fourth quarter of 2012.
Underlying these market conditions are strong capacity and increased support for business among some global insurers for both catastrophe and non-catastrophe exposed property risks.
In the Northeast of the US, property rates rose and insurers restricted coverage for flood-exposed properties following October’s Superstorm Sandy.
Dean Kilsura, Marsh’s US risk practices and specialties leader, said: “While rates continue to risk, insurers have a healthy appetite for business and this is making conditions progressively more favorable for insurance buyers. Underlying this trend are both strong capacity and increased interest from many global insurers.”
