Demand for liability cover increasing

Heightened demand, coupled with competitive pricing, has led to an increase in the amount of liability insurance purchased compared to four years ago, according to research by broker Marsh.

Marsh’s Liability Insurance Buyers Report 2012 found that the limit of liability insurance purchased across EMEA has increased by 7 percent since 2008.

This follows three previous years of decline. Since the onset of the financial crisis, the average level of insurance limit in EMEA has risen from €29 million in 2008 to €31 million in 2012, peaking at €32 million in 2011.

In North Western Europe, including the UK, the average limit purchased for liability insurance has increased by 40 percent, from €40 million in 2008 to €56 million in 2012.

“Continuing economic uncertainty has increased the perceived need for the protection insurance can offer, at a time when capacity remains abundant and pricing favourable for many firms,” said Alain Petit-Lambotte, EMEA casualty practice leader at Marsh.

“Since 2008, most companies have been able to afford the extra liability insurance they have thought it prudent to purchase. However, these favourable conditions are being challenged in some regions across EMEA, such as the Middle East and India, where some insurers are applying more stringent underwriting criteria in an effort to counter downward pricing.”