Most insurance risks in Europe, the Middle East and Africa have plentiful capacity, but rate increases are being seen in some categories, brokerage Marsh Inc. said in a report released Wednesday.

Buyers with poor claims histories or a significant proportion of catastrophe-exposed property likely are experiencing tougher market conditions, Marsh said. In addition, some underwriters are tightening their terms and conditions, according to the analysis.

“While insurers are pushing hard for rate increases, excess capacity in the market is still fueling competition,” Nick Bacon, London-based CEO of Marsh's international placement operations, said in a statement. “Accounts that are not catastrophe-exposed or have a good loss experience are highly sought after, resulting in renewal at the expiring premium or even a discount,” he added.

Insurers getting tougher

Insurers are toughening their stance in some areas, however.

“Some insurers, for example in France and Spain, are no longer offering long-term agreements or premium discounts for property,” said George Davies, London-based U.K. head of Marsh's risk management practice.

Capacity to underwrite property risks in the EMEA region remains ample, with supply outweighing demand as new insurers continue entering the market, according to the report. But “rates are starting to level off, although some discounts can still be negotiated on risks with a good loss history and where time has been spent in providing high-quality underwriting data,” according to the report.

Marine risks

The casualty insurance market across the EMEA region remained soft during the second quarter with average rate decreases of 5% to 10%. Exceptions include the offshore energy liability market, where rates continue to increase as a result of the Deepwater Horizon oil rig loss.

For marine risks, the picture is varied.

Protection and indemnity risks saw general rate increases of less than 5% at the most recent renewal, according to the report. The market remains soft overall for marine hull business due to excess capacity.

Marine liability markets are soft, on the whole, according to the report.

Energy market

In the energy market, rate increases are being seen on business with natural catastrophe, control-of-well, deepwater drilling or offshore liability exposures, with rate increases of 5% to 10% being seen.

The report, “Approach Your Risk with Clear Direction: 2011 EMEA Insurance Market Mid-year Update,” is available with registration at www.insurancemarketreport.com/emea.