6 February 2014 Insurance

Marsh: pricing down globally in fourth quarter

Global insurance pricing was down in all areas except the US at the end of 2013 according to Marsh.

In the company’s latest quarterly briefing, the Marsh Risk Management Global Insurance Index fell in the fourth quarter in the UK, Continental Europe, Asia-Pacific region and Latin America. The US was the only region in the global index to show a rise in overall rates.

“Strong capital positions, plentiful capacity, and ample competition within the global insurance industry are leading to favourable conditions for clients, especially those with well-managed risks,” said David Batchelor, president of Marsh’s International Division. “In the US, insurers are competing aggressively for profitable business and new entrants are helping to moderate any rate increases,” added Robert Bentley, president of Marsh’s US and Canada Division.
Rates for global property programmes saw decreases in the fourth quarter, although these were less than the previous quarter, according to the briefing.

Competition and available capacity in Latin America, were the driving factors for a 10 percent rate reduction in the region, while an abundance of capacity across the Asia-Pacific region kept rates low for non-catastrophe-exposed risks, which led to a 5 percent decrease in property rates.
Casualty insurance programmes saw a slight decrease due to falling rates in Asia-Pacific, Continental Europe and Latin America; while falling financial and professional liability rates in Asia-Pacific, the UK, and Continental Europe led to an overall decline in rates for those programmes globally.

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