The report says that rates for renewals in the quarter increased by 1.4 percent.

Andrew Chester, CEO of Bowring Marsh, Marsh's specialist international-placement broker, says, “With capacity and appetite for well-managed risk still strong, insureds are still able to achieve favorable results on renewal in many lines of business.”

Among some of the report's highlights:

• Financial and Professional insurance rates rose 1.9 percent in the third quarter, in contrast to almost flat renewals in Q2.
• A benign natural-catastrophe season kept increases to an average of 1.2 percent on Property insurance renewals for the third quarter. Insureds with a clean history “were more likely to experience flat renewals,” according to Marsh.
• Casualty insurance rates rose 1.2 percent on renewal for the period, higher than the 0.8-percent increase seen in the second quarter.

The report notes that “underwriters continue to show caution around particular risks,” such as Fracking and Cyber Liability.

U.S. companies, the report states, were more likely to experience rate increases than decreases in major lines of insurance for the second quarter in a row.

The report calls attention to capacity issues concerning the global-energy market; insurers are closely managing their exposures in that line of business after substantial losses over the past several years.

“Insurers are struggling to provide sufficient insurance capacity for the growing number of mega-energy projects—those with capital expenditure of more than $5 billion,” the report states.

Those clients are also willing to self-insure if they cannot find acceptable terms among insurers, Marsh notes. However, midsize energy projects, valued between $500 million and $5 billion, are enjoying the benefits of “fierce levels of competition among insurers.”

Rates for Directors & Officers coverage in the U.S. experienced increases as high as 10 percent, according to the report. While the number of securities lawsuits remains stable, increases in legal fees have put pressure on insurers.

“Much of this increase can be attributed to larger and more complex cases coupled with higher legal-billing rates,” the report says. “As a result, in the U.S. market, primary rates are trending upward.” 

PERSONAL LINES

MarketScout also released a barometer for personal lines, which showed rates up by 3 percent in September compared to the same month a year ago.

MarketScout CEO Richard Kerr says, “High-net-worth Homeowners' rates were a bit more competitive in September, with a rate increase averaging 2 percent as compared to 3 percent the prior month.”

Rates for homeowners insured for under $1 million in value saw their rates up an average of 3 percent year-over-year, a figure unchanged from August.

Personal Articles rates were up by 3 percent, the same rate of increase seen in August.