GLOBAL insurance rates continued to firm on average in the first three months, following a trend established over the previous 18 months, a private report showed today.
The first quarter marks the fifth consecutive quarter of a global average rate increase, said Marsh Inc, a wholly owned subsidiary of the New York-based insurance broker, Marsh & McLennan Companies Inc.
Underlying these market conditions are very strong capacity and increased support for business among some global insurers for both catastrophe- and non-catastrophe-exposed property risks, according to Marsh.
"For the first quarter, insurer capacity remains strong in China property market with stabilized rates," said Steve Lundin, General Manager at Marsh China.
"For Chinese companies with US exposures, directors and officers liability (D&O) insurance rate stabilized.
"With more Chinese companies seeking delisting from US market, the demand for run-off D&O coverage increases.
Regulatory scrutiny, particularly around anti-corruption regulation such as the Foreign Corrupt Practices Act, remains a chief concern for companies in many industries," added Lundin.