Soft market likely to persist through 2010: Marsh

The soft market in the Canadian commercial property and casualty sector will likely not bottom out until late 2010, possibly early 2011, Marsh reports.
In its report, Competition Nets Rewards – Multinational Client Service Insurance Market Report 2010, Marsh examines trends in insurance markets around the world.
In Canada, rate reductions on low hazard and high demand mid-market liability programs continue in the 5% to 12.5% range, the report says.
The higher hazard and more difficult class operations are somewhat modified, and reductions range between 2.5% to 10%.
“We are starting to see some slight signs of change in markets that have a substantial automobile book to go along with their primary casualty book,” the report said. “In Alberta and Ontario, deteriorating resources have had a knock-on effect with some insurers while rates of reductions have decreased.”
It also noted that multinational programs are seeing some changes due to regulatory changes instituted early in 2010.
“Canadian insurers indicate that they are looking for 5% portfolio premium improvement; however, this seems to be relating to a relatively small group of accounts that have not performed well over the last few years.”