Insurance broker Marsh says global insurance rates continued tofirm during the first quarter.

According to its Global Insurance Market Quarterly Briefing,Marsh says the first three months of 2013 marked the fifthconsecutive quarter of global rate increases.

In The U.S., most major insurance lines saw increases of between2 percent and 4 percent while rates decreased an average of about 1percent outside the U.S.

Marsh notes that insurers have restricted coverage forflood-exposed property in the aftermath of Superstorm Sandy.Insurance carriers are pushing for rate increases, especially inthe Northeast, says Marsh.

Property rate increases of more than 10 percent were typical inthe Northeast—the region most affected when Sandy made landfall atSouthern New Jersey on Oct. 29, 2012. The year prior, the same areawas affected by Hurricane Irene.

Moderately catastrophe-exposed programs renewed insurancecontracts with flat rates, or with increases of up to about 10percent, Marsh observes.

The broker says 55 percent of U.S. clients faced a rate increasefor property risk during in the first quarter.

Outside the U.S., insurance capacity was “comparatively greater”since 2012 was a relatively quiet year for natural catastrophes.Rates in areas where there had been significant catastrophelosses—Australia and Japan, for instance—began to stabilize.

“Increased capacity was seen again for [global] propertycatastrophe risks, stifling the efforts of some insurers to securerate increases,” reports Marsh, adding that some large insurers“showed a much greater appetite for this risk anbd are looking toexpand market share.”

EPLI Rising

Marsh's tracking of rates for employment practices liabilityinsurance shows more and more clients are absorbing rate increasesafter several years of rate decreases.

Marsh says 68 percent of clients had a rate increase in thefirst quarter, continuing a steady upward trend of EPLI rateincreases. Last year during the first quarter, 36 percent ofclients were faced with EPLI rate increases.

“Typical employment claims, such as race and genderdiscrimination, are occurring with high frequency, particularly asregulators focus on systemic discrimination,” notes Marsh.

Social media risk looms for insurers and employers, who maybe getting some solutions when it comes to wage-and-hour risk.New solutions are entering the market.