Commercial premiums will stay flat or fall says broker
Commercial insurance and reinsurance prices will be flat or slightly lower in the next three months except for cover exposed to the weak economy, which will rise, Marsh has said.
In property coverage, most of 1,000 clients surveyed by Marsh's property practice saw their rate change within a 5% range, either up or down. On average, rates dropped 2%.
Property in areas vulnerable to hurricanes or earthquakes have seen rates increasing an average of 8% in coverage that renewed in July.
In casualty coverage rates were also flat to slightly down so far in 2009.
Trade credit prices rise
Prices are up trade credit insurance. According to Marsh, increase in the frequency of claims is driving prices up by 20% to 30%, particularly for customers exposed to high-end big-ticket consumer spending. Insurers are tightening underwriting in the line, though capacity is still available.
Easing credit markets are improving the availability and price of reinsurance, and Marsh expects flat prices for policies that renew in January, unless a major catastrophe, such as a big hurricane, hits the US.
