Rates for US property insurance have begun to drop
as insurers compromise to meet their targets, according to an Aon report.
The report found there has been an increase in new capacity in the US, London and Bermuda markets, which is resulting in growing competition for business.
Aon UK Global Risks chairman John Turner said: "The US property market appears to be bucking the trend with a noticeable flattening in insurance premium rates in 2003.
"Most insurers globally are battling fiercely with declining investment rates and the need to boost loss reserves, which is keeping rates high across most classes of insurance business.
"US property, however, is benefiting from an influx of new capacity, which is competing for business and, for some clients, bringing rates down."
