Rates in property and aviation have softened with marine rates likely to begin falling soon, according to London market insurers.
But rates for casualty business are expected to increase further in 2004, with some classes such as US directors' and officers' insurance expected to continue to harden in 2005.
But the survey of operational drivers in the London insurance market by PricewaterhouseCoopers (PWC) said that despite the beginnings of a soft market rates still have a long way to fall before they become unprofitable.
Underwriting performance and cycle management remains the most important operational driver to London market insurers, followed in importance by aggregations of exposure and the impact on results, people and capital
management. The insurers ranked regulation and claims management as less important.
