The global insurance market continued to firm in the second quarter of
2012 continuing a clear trend that began in the third quarter of 2011,
according to the Marsh Risk Management Global Insurance Index, launched
today. The index, published in Marsh’s latest Global
Insurance Market Quarterly Briefing, showed that although rates
rose during the second quarter the increase was less pronounced than in
the previous two quarters.
Marsh’s new index is comprised of client renewal data on property,
casualty, and financial and professional lines of business, weighted by
premium placed, taken from 20 large economies across all continents.
The composite index, incorporating all these lines, of 1.014 in the
second quarter of 2012 indicates that rates at renewal have increased by
1.4 percent compared to renewal rates in the second quarter of 2011.
Claude Yoder, Head of Global Analytics at Marsh, said: “With the global
insurance market now clearly in a state of transition, understanding
market trends is vital for insureds making business-critical decisions
about their future risk management strategies. This pioneering approach
to measuring global rate movement is just one way Marsh uses analytics
to support clients as they plan their insurance programs.”
According to information from Marsh’s industry experts, the increase in
property insurance rates is being driven by unexpected adverse loss
developments from last year’s major catastrophes, an increased focus by
insurers on the quality of data provided by insureds, a rise in
attritional losses, and changes to the way insurers are calculating
their risk-adjusted cost of capital.
While the index shows that insurance rates for financial and
professional lines declined slightly after rising during the previous
two quarters, the overall trend suggests that the multiyear slide in
liability insurance rates is coming to an end.
About Marsh
Marsh,
a global leader in insurance broking and risk management, teams with its
clients to define, design, and deliver innovative industry-specific
solutions that help them protect their future and thrive. It has
approximately 26,000 colleagues who collaborate to provide advice and
transactional capabilities to clients in over 100 countries. Marsh is a
wholly owned subsidiary of Marsh
& McLennan Companies (NYSE: MMC), a global team of professional
services companies offering clients advice and solutions in the areas of
risk, strategy and human capital. With 53,000 employees worldwide and
annual revenue exceeding $11 billion, Marsh & McLennan Companies is also
the parent company of Guy
Carpenter, a global leader in providing risk and reinsurance
intermediary services; Mercer,
a global leader in human resource consulting and related services; and Oliver
Wyman, a global leader in management consulting. Follow Marsh on
Twitter @Marsh_Inc.
