Reacting to the recent spate of major natural catastrophes, insurers are being more selective in the capital they deploy and have in some cases withdrawn from catastrophe affected regions and loss-making sectors of business, according to broker Marsh.
Also, the expectation of an active U.S. hurricane season, combined with greater insurer discipline, is increasing the potential for a changing market dynamic through the balance of 2011, the broker said.
However, the overall global insurance market remains well-capitalized and generally competitive despite the catastrophe losses in the second quarter of 2011, Marsh said in its second quarter update.
“Although there has not been an overall change in market pricing in the wake of further natural catastrophes in the second quarter-including storms and tornadoes across the United States- the global insurance market remains under pressure,” said Nick Bacon, CEO of Bowring Marsh.
He said many insurers and reinsurers have already seen their 2011 budgets for catastrophe losses substantially eroded, if not exceeded even before the start of hurricane season.
Generally, insurance programs with catastrophe exposures representing at least 25 percent of the total insured value saw rate increases of up to 15 percent.
Was this article valuable?
Here are more articles you may enjoy.
Nuclear Verdicts Surge to $14.5 Billion in 2023 – Report 
Liberty Mutual Posts $1.5B Net Income for Q1, Reversing Loss 
Insurer Chubb Readies $350M Payout Tied to Baltimore Bridge Collapse 
Everton FC Buyer Accused of Fraud, Double-Pledging Assets in Lawsuit From This Issue
