Aon’s December Reinsurance Outlook is a rich look at the property casualty industry, focusing on reinsurance renewals. The renewal season is just wrapping up, so the numbers are pretty vague, indicating over and over that rate decreases were around 5% to 10%.
Here are highlights I culled from the section on U.S. rates:
- Property Catastrophe: decreases of 5% to 10% on national programs and programs in the Southeast. Midwest companies saw flat renewals as they have been hit hard in recent years by tornadoes, hailstorms, etc.
- Property Per Risk: decreases of 5% to 10%.
- Medical professional liability: Rates on business written by primary companies has been flat to slightly lower for physicians, but down – surprise! – 5% to 10% on hospitals.
- Lawyers professional liability: Rates are flat to slightly lower.
- General liability and umbrella: Insurance rates are flat or slightly lower. Reinsurers have noted how much rates have come down from their peak (2004-2005) and are concerned enough to approach the lines a bit more gingerly.
- Workers comp – rate decreases are moderating – down about 1%. The largest market, California, continues to post poor results. Decreases in claim frequency appear to be ending. Reinsurance rates are down – all together now – 5% to 10%.
- Surety – This economy-sensitive line is holding up better than you’d think, given the economy. Primary company prices are flat but reinsurers blah blah blah 5% to 10%.