Marsh’s annual US Insurance Market Report provides detailed information on commercial insurance market trends and risk issues for all major classes of business and more than two dozen industry and specialty lines. Other major findings from the report include:
- Insureds with significant catastrophe exposures renewing programs in the fourth quarter of 2012 typically saw property rate increases of 5% to 15%.
- The general liability insurance market was generally stable in 2012, with some moderate firming. Rates at renewal in the fourth quarter typically ranged from 5% decreases to 5% increases.
- Workers’ compensation rates generally renewed in the range of 5% decreases to 5% increases in the fourth quarter, with rates generally expected to increase more in 2013.
- After a decade of steadily declining rates, the D&O insurance market entered a state of transition in the second quarter of 2012. Pricing at renewal in the fourth quarter was typically flat to up 10% for publicly traded companies and flat to up 15% for private companies. Many insurers appear likely to continue seeking rate increases in 2013.
- Driven primarily by an increase in frequency and severity of claims, commercial E&O and cyber insurance rates began trending upward in 2012. Rates for both lines were typically flat to up 5% in the fourth quarter and are generally expected to continue to climb in 2013.
- Although conditions in the political risk market remained generally stable, pricing increased in some countries in the Middle East and North Africa at the end of 2012; this trend appears likely to continue in 2013. Conditions in the US trade credit insurance market are expected to continue to favor insureds despite concern about the European sovereign debt crisis and other global events.