Global insurance rates trended downward at the end of 2013, driven by average pricing declines in all regions except the US, according to Marsh’s latest Global Insurance Market Quarterly Briefing.
Overall rates tracked by the Marsh Risk Management Global Insurance Index in Q4 2013 fell in the UK, Europe, and most significantly in the Asia-Pacific region and in Latin America. The US was the only region in the global index to show a rise in overall rates.
The market saw lower rates for global property programs renewing in Q4 2013, though by a smaller magnitude than in the previous quarter, according to the briefing.
In Latin America, the typical rate reduction on renewal approached 10 percent, driven by competition and available capacity, along with acceptable loss experience.
The Asia-Pacific region also saw decreases in property rates averaging 5 percent as an abundance of capacity across the region, particularly in Asia, kept rates low for non-catastrophe-exposed risks.
Globally, casualty insurance programmes typically renewed with a slight decrease, led by falling rates in Asia-Pacific, Continental Europe, and Latin America; while falling financial and professional liability rates in Asia-Pacific, the UK, and Europe led to an overall decline in rates for those programs globally.
David Batchelor, president of Marsh’s International Division, said: “Strong capital positions, plentiful capacity, and ample competition within the global insurance industry are leading to favorable conditions for clients, especially those with well-managed risks."
Robert Bentley, president of Marsh’s US and Canada Division, added that in the US, insurers are competing aggressively for profitable business and new entrants are helping to moderate any rate increases.
