Marsh: global insurance rates declined in Q4

Global insurance pricing trended downwards except in the US during the fourth quarter of 2013, with the average price falling by between 5 and 10 percent, according to Marsh.

Marsh found that global property programmes experienced consistent rate reductions. In Latin America the average rate fell by 10 percent, the report found, while in the Asia-Pacific rates declined by 5 percent. In both instances Marsh cited rising competition and increased available capacity.

Global casualty programmes held up well, with only a slight decrease in rate, but aviation rates declined sharply at the end of 2013, with airlines renewing at 15-20 percent down.

Meanwhile, rates for Japan have held up well post-Tohoku, with levels 30-50 percent higher than before the earthquake.

Commenting on global rates David Batchelor, president of Marsh’s International Division says: “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,”