Marsh: global insurance rates hardened in Q1

Average global insurance rates continued to harden in the first quarter of 2013, according to broker Marsh’s latest Global Insurance Market Quarterly Briefing.

The rise follows a trend established in the past 18 months, the broker said. The first quarter of 2013 was the fifth consecutive quarter or fate rises.

The first-quarter rate rises were mainly driven by the US market. Marsh said rates increased in most major US insurance lines by between 2% and 4%. This offset a 1% drop in non-US rates in the quarter.

Overall, rates increased 0.3% in the first quarter of 2013, following an increase of 1.2% in the fourth quarter of 2012.

Global property rate typically declined on renewal during the quarter by 0.2%, while financial and professional lines generally increased by 0.8% on renewal and casualty insurance renewed up 0.7%.

For liability insurance, financial institutions in the eurozone continue to face increases while rates generally declined in other major classes of business.

Underlying these market conditions are strong capacity and increased support for business among some global insurers for both catastrophe- and non-catastrophe-exposed property risks, Marsh said.

Marsh’s US risk practices and specialties leader Dean Klisura said: “While rates continue to rise, insurers have a healthy appetite for business and this is making conditions progressively more favourable for insurance buyers. Underlying this trend are both strong capacity and increased interest from many global insurers.”