Global property insurance prices firming: Marsh

Insurers have tried to recoup some of their catastrophe-related losses in 2011 by upping global property insurance rates in the first quarter of this year, according to a report from Marsh.

It found property rates in the United States generally increased for both catastrophe-exposed and non-catastrophe risks in 2012 Q1, with the former increasing between 10% and 20%.

In Japan and New Zealand, property clients with catastrophe exposures saw rate increases of higher than 30%, noted Marsh’s Global Insurance Market Quarterly Briefing: Q1 2012.

In 20 key geographic regions, only six — China, France, Germany, South Africa, Spain and the UAE — recorded overall decreases for non-catastrophe exposed property risks. Canada was viewed as a market with “stable” price trends in both property and liability.

Marsh also said insurers are more wary about writing contingent business interruption coverage following last year’s near-record catastrophe losses. Globally, rates in liability lines remained stable, with generally flat pricing. There was no significant withdrawal of capacity in the first quarter of this year, according to the broker.

“The global commercial property insurance market is continuing to show signs of upwards rate trends, especially for catastrophe-exposed risks,” said Dean Klisura, Marsh’s U.S. risk practices leader. “We believe that this trend will continue in the short term, with the average rate of increase continuing to rise month over month.”