Marsh today released its Global Insurance Market Quarterly Briefing. Highlights of this quarter’s report include:
• Global insurance rate decreases have moderated on average for the second quarter in a row to 3.6% (compared to the previous quarter’s 3.8%).
• Global insured catastrophe losses increased in the first half of 2016 to $27 billion (compared to $19 billion in the first half of 2015), which could potentially cause some insurers to begin reconsidering rates if the trend continues.
• The UK’s recent decision to leave the EU has yet to impact the market, but will continue to be monitored.
• US cyber insurance renewal rate increases moderated in Q2 2016 to 6.9% on average, compared to last quarter’s average increase of 12
• The US was the only geography worldwide to experience an increased decline in renewal rates, particularly affected by weakening rates in D&O liability insurance for public companies.
Commenting on the findings in the briefing, Dean Klisura, Global Industry Specialties and Placement Leader at Marsh, said: “While this is the 13th consecutive quarter that global insurance rates have declined, Q2 of 2016 also marks the second quarter in a row that the rate of decline has, on average, slowed.
“In the second quarter of 2016, US cyber insurance rate increases moderated to an average of 6.9% compared to the previous quarter’s average increase of 12%. With decreases continuing in other major lines of business, the US was the only geography worldwide that saw a greater overall rate of decline this quarter.”
To download the full report please click here
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