Market well capitalised despite nat cat losses
The overall global insurance market remains well capitalised and generally competitive, despite major natural catastrophe losses in the second-quarter, according to Marsh’s Second Quarter 2011 Insurance Market Update.
However, insurers are being more selective in the capital they deploy, with some withdrawn from catastrophe affected regions and loss-making sectors of business.
As a result, accounts with losses or with a significant proportion of catastrophe exposures are experiencing tougher market conditions, which together with the expectation of an active US hurricane season, increases the potential for a changing market dynamic through the rest of this year.
Marsh notes that property renewals varied widely in the second-quarter depending on loss records, catastrophe exposure levels, catastrophe cover purchased, and the quality of data submitted.
Generally, insurance programmes with catastrophe exposures representing at least 25% of the total insured value saw rate increases of up to 15%.
Nick Bacon, chief executive of Bowring Marsh, comments: “Many insurers and reinsurers have already seen their 2011 budgets for catastrophe losses substantially eroded, if not exceeded. And this was before the start of the Atlantic hurricane season.”
Category: Insurance News, Marsh News
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