Key trends seen in EMEA in the first six months of 2010

Most clients across the EMEA region were still able to secure premium rate reductions for property and casualty classes of business in the first half of 2010. New insurers are entering local markets in an attempt to diversify their book of business and access new opportunities, bringing additional capacity with them and further intensifying local competition, often allowing rate reductions for clients. Insurers are striving for rate increases but competition remains intense resulting in significant discounts for good quality risks in certain countries. Motor rates across the region remained generally stable in the first half of 2010 after several years in decline.

Trade credit and financial institutions (FI) insurance were heavily impacted by the global economic downturn and clients have had to accept significant rate increases in these lines of business in recent years as high loss ratios forced insurers to review their pricing and coverage on offer. However, 2010 has seen trade credit and FI rates stabilise as underwriters have become more comfortable with their exposure and new insurers enter the market. It is still difficult to find adequate cover at reasonable rates for large FIs, although it is thought that terms will now begin to improve.

Increasing demand for environmental insurance has developed as a consequence of a new EU Environmental Liability Directive which has now been written into the regulation of member states. The explosion of the Deepwater Horizon rig and its dramatic consequences both in terms of loss of life and pollution is being closely monitored by the marine and energy markets.

Those countries with developing insurance markets, including certain African and Central and Eastern European countries, have reported significant increases in premium volumes as awareness of insurance and its benefits are recognised. New market entrants will allow for continued development of these lines of business, working with Marsh to support local clients in their risk management.

Updated as of 27/07/2010. To see the earlier EMEA IMR report on the last six months of 2009, click here.