Global Insurance Market Quarterly Briefing – June 2012
Some insurers are responding to increasing concerns about cyber risks with product innovations, such as new protection for cloud computing.
NEW MARSH INDEX SHOWS INSURANCE MARKET FIRMING
Rates in the global insurance market generally firmed in the second quarter of 2012. According to the Marsh Risk Management Global Insurance Index, launched with this quarter's briefing, the global insurance market has shown a clear trend of firming since the third quarter of 2011.
The multi-year slide in liability insurance rates showed signs of moderating as general liability and professional liability insurance rates were typically stable at renewal in most major geographies.
Property insurance rates rose in the second quarter of 2012, driven by unexpected adverse loss developments from the major catastrophes of 2011, increased focus by insurers on the data provided by insureds, a rise in attritional losses, and changes to insurers' calculations of their risk-adjusted cost of capital. Property insurance rates for insureds with moderate to heavy catastrophe exposures climbed significantly in loss-affected regions; insureds without such exposures generally saw rates stabilise.
- Overall pricing in the global insurance markets firmed in the second quarter of 2012, as seen in the Marsh Risk Management Global Insurance Index.
- The long trend of liability insurance rate decreases appeared to be ending.
- Property insurance rates rose in most geographies, especially in areas that experienced large losses in 2011.
- Some insurers are responding to increasing concerns about cyber risks with product innovations, such as new protection for cloud computing.
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