In good news for commercial insurance customers, Marsh’s August2015 “Global Insurance Market Quarterly Briefing”found that commercial rates decreased around the world in mostlines of business. According to the report, the decrease for theninth consecutive quarter generally can be attributed tocompetitive market conditions, characterized by an abundance ofglobal capacity and a lack of large insured loss activity resultingin reported underwriting results with favorable combinedratios.

Although decreases were seen across regions and in most majorlines of business, “notable exceptions” were seen in specializedcoverages led by a firming Cyber insurance market. The report foundthat the Asia-Pacific region experienced the largest composite ratedecrease, followed by the U.K., Continental Europe, Latin Americaand the U.S.

Property insurance showed the largest rate declines in thesecond quarter—greater than 5% on average. Asia-Pacific andContinental Europe led the rate decreases, which occurred acrossall regions. Casualty insurance rates, on average, decreased moremoderately than Property, according to the report, ranging fromflat to down 5%. This trend was consistent across all majorregions, although Asia-Pacific, as it did in the first quarter2015, had the largest decrease, followed by the U.K.

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Rosalie Donlon

Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU You can contact her at [email protected].