Insurance rates remain stable during the first quarter of 2013, falling by approximately 1% in non-US countries.
Overall, rates renewed with an increase of 0.3% in the first quarter of 2013, following an increase of 1.2% in the fourth quarter of 2012, according to Marsh’s latest Global Insurance Market Quarterly Briefing.
However, global property rate typically declined on renewal during the quarter by 0.2%, while financial & professional lines generally increased by 0.8% on renewal and casualty insurance renewed up 0.7%.
Underlying these market conditions are very strong capacity and increased support for business among some global insurers for both catastrophe- and non-catastrophe-exposed property risks.
In the US Northeast, property rates rose and insurers restricted coverage for flood-exposed properties following October’s Superstorm Sandy. Outside the US, first-quarter property rates were down slightly overall from the first quarter last year.
There is “increased interest from many global insurers,” Dean Klisura, Marsh’s US Risk Practices and Specialties leader, said.