Global Insurance Market Quarterly Briefing – November 2013
The Marsh insurance index for the United States showed a slight increase, but all other regions worldwide saw decreases in the third quarter of 2013.
In the United States, the composite rate rose 1.9%, led by increases in casualty and financial and professional lines. Casualty insurance rates in the United States rose at a faster pace in the quarter, driven by increases in workers’ compensation, particularly on guaranteed cost business and those risks with large employee concentrations.
Global insurance rates fell marginally in the third quarter of 2013, leading to a modest decline in the Marsh Risk Management Global Insurance Index. The indices for the Asia-Pacific, Continental Europe, and Latin America regions all showed decreases. Insurance markets in the United States proved the exception, with overall rates showing a slight increase.
The Global Insurance Market Quarterly Briefing reports changes in global insurance rates as reflected by the Marsh Risk Management Global Insurance Index, a composite or weighted average of rate change activity over the preceding four quarters. According to the report:
- Global property rates fell for the fifth quarter in a row.
- Casualty rates rose 0.7% globally, primarily a result of increases in the United States.
- Liability rates were stable or declined in most markets.
- Roughly half of insureds in the United States experienced rate increases at renewal.