Insurance rates in most major regions declined modestly in the second quarter of 2013, while rates in the US rose moderately, according to Marsh's latest Global Insurance Market Quarterly Briefing, released today. Outside the US, rates typically fell between 1% and 3%, resulting in a decline in the Marsh Risk Management Global Insurance Index for the first time since its inception six quarters ago.
The US was the only region in the global index to show an increase of rates on renewal, with a rise viewed across all lines of business of 1.6%. Rate increases were most prevalent in professional liability and financial institution liability lines, which renewed on average flat to up 10% in the quarter. Marsh clients renewing their directors and officers liability (D&O) in the quarter typically saw flat to 8% increases in rate.
Financial institutions in parts of the Eurozone also saw liability rate increases during the second quarter, with rates up on average between 10% to 20% in Italy. Rates typically renewed flat to up 10% in France and Spain.
Increased competition among insurers, increased capacity, and the absence of major catastrophe losses saw property insurance rates typically fall or remain stable across all regions in the quarter.
"Despite rate increases in several lines of business in the US, insurers are competing aggressively for profitable business, and the market continues to experience an influx of new capacity," said Dean Klisura, Marsh's US Risk Practices and Specialties leader. "All of this is resulting in generally favorable market conditions for most clients."