Global Insurance Market Quarterly Briefing – May 2014

Declining for the fourth quarter in a row, the Marsh Risk Management Global Insurance Index moved to its lowest level since the third quarter of 2012.

Although the United States and Continental Europe saw a slight increase in casualty rates, the casualty market continued to favor insurance buyers, with rates remaining generally stable overall and decreases being recorded across Latin America, Asia-Pacific, and in the United Kingdom.

A continued softening of property pricing generated overall insurance market declines in the first quarter in every major region globally. Reflecting this activity, the Marsh Risk Management Global Insurance Index moved to 100.4, its lowest level since the third quarter of 2012 – and its fourth consecutive quarterly decline.

Among the key findings from the report:

• Strong competition, ample capacity, and a scarcity of major events contributed to a drop in property insurance rates across all major regions in the first quarter.
• Although the United States and Continental Europe saw a slight increase in casualty rates, the casualty market continued to favor insurance buyers, with rates remaining generally stable overall and decreases being recorded across Latin America, Asia-Pacific, and in the United Kingdom.
• The professional liability market remained stable overall, with rates on average flat or declining by up to 10% in several countries.
• Italy and Spain were the only countries in the Eurozone to experience a rate increase for financial institutions coverage during the first quarter, with rates on average flat to up 20%.
• Total insurable values continued to increase modestly, as economies recover from the global financial crisis.