Property insurance rates are on the rise around the world, solidifying a turn in the market after years of declines, insurance brokerage Marsh said on Tuesday. Just in the United States, customers without significant exposure to natural catastrophes saw price increases of up to 10 percent in the first quarter, while those in disaster-prone areas paid rates up to 20 percent higher than their last contract, the Marsh & McLennan Cos Inc unit said.
"We believe that this trend will continue in the short term, with the average rate of increase continuing to rise month over month," Dean Klisura, a Marsh managing director, said in a statement. Prices are on the rise elsewhere, Marsh added, most sharply in the countries that have had recent natural disasters. The company cited two main factors for the increase in prices: 2011's record-setting catastrophe losses (more than $100 billion by most estimates)and changes in the way insurance companies model their exposure to risk.
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