Majority of January property renewals see rate hikes
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Almost 60% of January property renewals experienced premium rate increases, according to a survey posted on Marsh Inc.'s website this week.
The report, “Benchmarking Trends: Property ‘All-Risk' Renewal Rates Continue to Climb in January,” also found that catastrophe-exposed accounts—defined as having 25% or more of their total insurable value in California earthquake or wind Tier 1 zones—increased on average 5.7%, with a median rate increase of 3.1%.
For noncatastrophe-exposed account renewals, average rates increased 5.2%, Marsh said in the report.
Median rate increases for all types of property placements rose to 3.4% for policies renewing in January.
Marsh pointed out that clients with little to no catastrophe exposure saw rate increases similar to their catastrophe-exposed counterparts. “It is expected that this trend will continue through the first quarter as this transitional market continues to shift,” said Marsh in the report.
Marsh noted, however, that “although insurers are pressuring rates upward, 22% of Marsh's clients were able to secure decreases in rates during the January renewal period.”
Marsh also found that one out of five placements renewed at flat rates.
Marsh first noted theuptick in property rates in the second half of last year.
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