Insurance rates to stay well ahead of loss cost for foreseeable future: Chubb CEO

Insurance rates should continue to advance "well in excess of lost cost" for the foreseeable future, Evan Greenberg (pictured), chief executive officer of  Chubb, has said.

"The level of rate increase remains robust and is naturally slowing as portfolios achieve or approach rate adequacy," Greenberg told the Q4 earnings call of his widest lens on the market.

Rate advances continue "well in excess of loss cost" as the loss environment remains "anything but benign," he said.

"I expect this trend to continue for some time."

Chubb claims to have taken a 10.5% rate gain in the fourth quarter from its North American commercial P&C business and 13% in its international general insurance segment, the group said in its Q4 earnings statement.

Net premiums written in P&C rose 9.6% year on year in Q4, with commercial up 13% and consumer up over 2%, the company said. Commercial premiums increased 11% in North America and 15% in the international segment.

Greenberg expects growth in the consumer lines to pick up as the year goes along, he added. Trends in travel, consumer spending and consumer finance all point to recovery, he said.