Potential increased for changing market: Marsh

Expectations of an active U.S. hurricane season, combined with greater insurer discipline, increase the potential for a changing market dynamic through the balance of 2011, Marsh said in its 2011 Q2 Insurance Market Update.
Despite the heavy catastrophe losses sustained by the global insurance market in 2011 Q1 and Q2, the international insurance market remains well capitalized and generally competitive, Marsh reported.
“Although there has been no general impact on capacity from the quarter’s major events, there has been some withdrawal from catastrophe-affected regions and in loss-making sectors of business,” the report says.
Generally, insurance programs with catastrophe exposures representing at least 25% of the total insured value were likely to face up to 15% increases in premium rates at renewal. Those without significant catastrophe exposure continue to enjoy competitive market conditions, it adds.
“In the United States, a benign wind season is unlikely to lead to a return to market-wide reductions, but rather to a continuance of erratic market behaviour through year end.”