Global Insurance Market Quarterly Briefing – April 2013
On average, global insurance rates firmed in the first quarter. Many parts of the world had a stable rate environment, but most major lines in the United States saw increases of 2% to 4%.
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. However, property rates rose in the US Northeast and insurers restricted coverage for flood-exposed properties.
Global insurance rates continued to firm on average in the first quarter of 2013, following a trend established over the previous 18 months. In the United States, most major insurance lines saw rate increases of 2% to 4%. Outside the United States, rates overall decreased by an average of approximately 1%.
According to the report:
- Property rates increased in the US Northeast following October’s Superstorm Sandy, though property rates were down slightly in international regions from the first quarter last year.
- Financial and professional lines generally increased by 0.8% globally on renewal.
- Casualty insurance rates renewed up 0.7%.
- Strong capacity and increased support for business among some global insurers for catastrophe and non-catastrophe-exposed property risks underlie market conditions.