The hard market will continue throughout the year because insurers' combined ratios remain high, according to a report by the Insurance Information Institute (IIF).
Despite increases in US property & casualty rates for 2003, they are now projected to slacken.
The report forecasts that property & casualty insurers' net written premiums will rise by 12.7% in 2003 due to higher pricing and stronger demand.
This compares with an estimated rise of 14.2% in 2002 and represents the first slowdown since 1998.
The report said: "Combined ratios must fall below 95 before the industry's financial performance achieves consistency with the risk it assumes. In short, 2003 is way too soon for the hard market to end for most insurers."
