But in first half of year, rates continued to fall
Insurance rates across most lines of business in Europe, the Middle East and Africa (EMEA) continued to soften in the first half of 2008 according to Marsh.
But the broking giant also identified trends being accelerated by the credit crunch that suggest that the market may harden in the near future.
In most lines of business the overall EMEA insurance market continued to soften due to strong competition. However, as a result of the global credit crunch and financial market turmoil since the fourth quarter 2007, trade credit insurance loss ratios increased and the market hardened.
Jeremy Cooke, head of global market relationship management at Marsh, said: “Trade credit insurance premiums are expected to increase further over the next few months as a direct result of the economic downturn. While we are yet to see whether the difficult economic environment will also impact the financial and professional market and other lines of business, there is some evidence that there is increased claims activity in this area.
“The general softening trend that we have seen over the past few years is eventually going to come to an end. We expect the market to harden in the near future, a change that could be accelerated by increasing claims.”
