According to Marsh’s latest global insurance quarterly briefing, insurance rates in most major regions declined modestly in Q2 of 2013.
Outside the US, rates typically fell between 1 percent and 3 percent, resulting in a decline in the Marsh Risk Management Global Insurance Index for the first time since its inception six quarters ago.
The US was the only region in the index to show an increase of rates on renewal, with a rise viewed across all lines of business of 1.6 percent.
Rate increases were most prevalent in professional liability and financial institution liability lines, which renewed on average flat to up 10 percent in the quarter.
Financial institutions in parts of the Eurozone also saw liability rate increases during Q2, with rates up on average between 10 percent and 20 percent in Italy. Rates typically renewed flat to up 10 percent in France and Spain.
Increased competition among insurers, increased capacity, and the absence of major catastrophe losses saw property insurance rates typically fall or remain stable across all regions in the quarter.
Dean Klisura, Marsh’s US risk practices and specialties leader, said: “Despite rate increases in several lines of business in the US, insurers are competing aggressively for profitable business, and the market continues to experience an influx of new capacity.”
“All of this is resulting in generally favourable market conditions for most clients.”
