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Member, Beacon International Group, Ltd.
Rates in the global insurance market firmed in general, according to a new market index released by Marsh Inc. on Thursday.
The new Marsh Risk Management Global Insurance Index is based on renewal data from 20 major countries in casualty, property and financial and professional insurance lines. The composite index showed a 1.4% increase in rates at renewal during the second quarter of this year compared with the same period last.
Sixty-one percent of the U.S. companies in the survey experienced increases in property rates, with 14% reporting no change and the rest reporting decreases. For general liability, an equal percentage—41%— reported increases and decreases, with the remaining 18% reporting no changes. In workers compensation, 44% reported increases, 29% decreases and the rest unchanged.
“Rates for directors and officers liability insurance stabilized following nearly a decade of decreases,” according to Marsh. “Although the changes have so far been moderate, there are indications rates are firming.” According to the index, 49% of the publicly traded companies experienced D&O insurance increases, 41% decreases, and the rest flat.
Globally, rates for catastrophe-exposed property risks continued to climb in most countries. In Japan, increases typically were greater than 30% on renewal, while increases in the United States ran in the 10% to 20% range. Chinese risks, however, experienced rate decreases of up to 10%, according to Marsh.