This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Global Insurance Market Continued Firming In Q3: Marsh Index

Global insurance prices continued to rise in the third quarter of 2012, continuing the slow but steady trend that began in the second half of 2011. According to the Marsh Risk Management Global Insurance Index, a composite of changes in insurance costs over a rolling 12-month period, prices across major lines of insurance increased by 0.9% in the third quarter.

By contrast, rates at renewal on average increased by 1.4% in the third quarter, the same level of increase at renewal seen in the second quarter. The figures, published in Marsh’s Global Insurance Market Quarterly Briefing, suggest that renewal rate changes, although varying across lines of business, may be stabilizing.

Andrew Chester, CEO of Bowring Marsh, commented: “While the global insurance market continues to be in a state of clear transition, the results for individual insureds vary significantly. With capacity and appetite for well-managed risk still strong, insureds are still able to achieve favorable results on renewal in many lines of business.”

Certain major lines of business saw hardening with financial and professional insurance rates rising by an average of 1.9% on renewal as the firming trend begun last year continued. Financial institutions in every major Eurozone country typically experienced increases in liability insurance rates as insurers tightened conditions.

Property insurance rates stabilized as a lack of major losses from natural catastrophes so far this year kept increases to an average of 1.2% on renewal. Insureds with clean loss histories were more likely to experience flat renewals. Barring a significant natural catastrophe event, this trend is expected to continue, with flat renewals becoming more common by the end of the year. Casualty insurance rates globally rose on average by 1.2% on renewal in the quarter, higher than the 0.8% increase seen last quarter.

Data on the US market showed that for the second quarter in a row, US companies were more likely to experience rate increases than decreases in major lines of insurance.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs