The global pricing dropped during the last quarter of 2013, says a recent news report.
According to recent insurance industry news issued in the Global Insurance Market Quarterly Briefing from Marsh, the average pricing declines that were experienced around the world – aside from in the United States – sent the global rates downward during the last quarter of 2013.
During that time, the company tracked the rates and found that the global index dropped in many areas.
For instance, this insurance industry report showed that the risk management global insurance index from Marsh saw drops in continental Europe and the United Kingdom, but more significant decreases in the Latin America and Asia Pacific regions. Conversely, the United States experienced an overall rise in its rates, said the recent news report.
During the last quarter, the property insurance industry that were renewing also saw lower rates.
That said, those drops had eased in comparison with the third quarter of 2013, said the report. The rate reductions that were seen in Latin America were typically around 10 percent. It was pointed out that available capacity and competition were likely the driving forces behind that trend. In the Asia pacific region, on the other hand, the average decline in property rates was 5 percent.
The casualty market also saw a typical renewal at a rate that is slightly lower around the world. The greatest drops were in Asia Pacific, followed by Latin America and continental Europe, said the report. The Asia Pacific region also saw rates sliding in the professional liability and financial coverage, as did the U.K. and continental Europe.
The president of the international division at Marsh, David Batchelor, explained that “Strong capital positions, plentiful capacity, and ample competition within the global insurance industry are leading to favorable conditions for clients, especially those with well-managed risks.” The company’s president of the U.S. and Canada division, Robert Bentley, added that in the United States, the insurance industry is seeing the companies in an aggressive competition for profitable business, and new entrants to the market are assisting in the moderation of potential increases in the rates.