Major findings in the report according to Marsh include:

Nearly two-thirds of Marsh's U.S. property insurance clients received a decrease in premium rates in the 2010 fourth quarter, with 29 percent experiencing a median reduction of at least 10 percent. On average, property rates declined 4.5 percent in the quarter. The market is expected to remain competitive in 2011 but could be adversely impacted by global economic conditions and changes to catastrophe models introduced by insurers.
The casualty market continued to soften in 2010, with insureds typically experiencing consistent and steady rate reductions. General liability rates declined an average of 4.7 percent in the fourth quarter, with rate reductions for individual insureds depending on risk-specific factors, such as class of business and loss history. While competition is expected to remain healthy in 2011, carriers are beginning to push for rate increases and scrutinize loss experience closely.
Despite an increase in underlying loss rate actions in California and New York, workers' compensation insurance remained a buyers' market in 2010, with average rates declining 5.2 percent in the fourth quarter. Barring an industry-wide catastrophic event, the market is expected to remain competitive. However, the impact of recently enacted health care reform legislation will continue to be closely monitored by the market.
The environmental insurance market saw a significant increase in capacity and competition in 2010. As a result, rates fell as much as 40 percent depending on the type of product, loss history and environmental conditions of insured locations. The market is expected to remain competitive in 2011, but insurers continue to be concerned about emerging regulatory and legal developments.
Directors and officers liability insurance rates for public companies declined an average of 12.2 percent in the fourth quarter. Rates are expected to remain competitive for attractive risks throughout 2011 but could turn as a result of increased litigation or regulation or a consolidation of major D&O insurers.

Special Reports /

Report: Only ‘Market-Shifting’ Event Will Turn Market In 2011

Related Stories

Recommended For You