Property insurance rates are coming down, and the upward rate pressure on many other lines of business is easing. This is the word from Willis North America’s Marketplace Realities, the longstanding semiannual publication predicting price movement and key trends for every major line of insurance.
The 2014 edition, published yesterday, forecasts property rates dropping 10-12% for non-CAT-exposed risks and 5-10% for CAT-exposed risks. Overall, 14 lines can expect increases, and eight decreases, but the increases are moderating from earlier in the year.
Why the market softening? It’s partly due to the new capital flowing into the industry, in ways we’ve seen and in ways we haven’t seen before.
In introductory comments—and the video here—Eric Joost, COO of Willis North America, talks about the capital innovation impacting the market and why these changes are coming now.