US – Marsh Risk Management global insurance index declines

According to Marsh’s latest Global Insurance Market Quarterly Briefing, insurance rates in most major regions declined modestly in the second quarter of 2013, while rates in the US rose moderately. Outside the US, rates typically fell between one and three percent, 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 percent. Rate increases were most prevalent in professional liability and financial institution liability lines, which renewed on average flat to up 10 percent in the quarter. Marsh clients renewing their D&O in the quarter typically saw flat to eight percent increases in rate. 

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 favourable market conditions for most clients.”