Insurance premium rate reductions slowed for property and casualty business across Europe, the Middle East and Africa in the first half of 2009, according to figures released by Marsh, the leading insurance broker and risk adviser. While rising claims notifications are increasing pressure on rates, competition between carriers and plentiful capacity are still the dominating downward drivers of rates in most markets.
Bruce Trigg, Leader of Marsh’s Risk Management Practice in Europe, the Middle East and Africa, said: “As clients look to manage their way through the economic downturn, they are reducing the sums they insure in an effort to cut costs where possible, potentially leaving them underinsured. This has resulted in premium reduction and increased capacity in the market.
“This means that the overall insurance marketplace remains competitive, especially in countries that have a developed insurance market. Capacity is largely unchanged and insurers’ appetite for risk remains. However, as claims rise, insurers are beginning to negotiate more aggressively on renewals, as previous rate reductions were unsustainable.” See attached release.
