Global Insurance Market Quarterly Briefing – December 2012
Insurance rates firmed in the fourth quarter of 2012, but at a slower rate than in the previous quarter, despite the mounting costs of Superstorm Sandy.
In the United States, insureds are beginning to feel some of the effects of Superstorm Sandy, with insurers increasing their push for rate increases.
Global insurance rates continued to firm in the fourth quarter of 2012, but at a slower rate than in the previous quarter, despite the mounting cost to the insurance industry of Superstorm Sandy.
The Marsh Risk Management Global Insurance Index, a composite or weighted average of rate change activity over the preceding four quarters in major lines of insurance business, rose slightly to 101.2 from 100.9 in the third quarter. The index was based at 100.0 in the second quarter of 2012.
The average rate change at renewal was a 1.2% increase in the fourth quarter, compared to the 1.4% seen in the third quarter. While property rates continued to rise, the rate of increase continued to flatten for the second quarter in row.