NU Online News Service, Sept. 30, 1:14 p.m.EDT

Catastrophe-exposed risks showed the greatest premium rateincreases across the world for the third quarter, coming in atapproximately 10 percent, but otherwise insurance rates haveremained stable, according to a report from insurance brokerMarsh.

“Across lines of business, insurers priced risks competitivelyand retained a healthy appetite for new business,” says DeanKlisura, Marsh's U.S. risk practice leader. “Although ratesremained relatively stable, reductions were common in many lines.The size of global insurance market capacity remains very strong,but is more challenged in loss-affected regions.”

In its “Insurance Market Update Third Quarter 2011”report, Marsh says in high-risk earthquake and wind zones,increases stood at 10 percent or more.

Decreases could be found where there were no recent catastrophelosses.

Rate increases were above average in Japan, where rates rose 20percent across the board no matter what the exposure was. Programswith losses experienced increases as high as 50 percent.

In Australia, where flooding struck the nation earlier thisyear, increases stood at 5 percent on programs without losses andnot involved in mining.

The report says capacity for natural-catastrophe risks “remainedconstant, though some syndicates at Lloyd's reduced capacity inorder to manage their aggregate exposures.”

Examining liability rates, overall markets exhibited decreasesor were stable with a few exceptions.

In the United States, professional liability, financialinstitutions and directors and officers coverage were listed withdecreases as high as 10 percent. General liability was theexception with increases up to 10 percent.

At the top of the insured catastrophe loss list through thisyear was the March earthquake and tsunami in Japan valued at $30billion in insured losses. The New Zealand earthquake in Februaryis valued at more than $10 billion in insured losses, according toMarsh.

Combining the tornadoes, wildfire and Hurricane Irene lossesthrough the third quarter, the United States surpasses New Zealandon the catastrophe-loss list topping out with more than $17 billionin insured losses. That number is probably higher with flood lossesin April through June, but no figures for insured losses wereavailable.