However, the increase was higher for loss-impacted and catastrophe-exposed clients, who saw a rise due to last year's record-breaking floods and other natural disasters. Marsh states that underwriters are continuing to focus on catastrophe perils and that it is critical for insureds to continue improving their risk management strategies in order to succeed at renewal.
Head of Global Placement Asia & Pacific, John Donnelly, says that property insurance is the only area where the company has concerns, particularly for clients who have a poor loss record and are located in disaster-prone zones. Reinsurance rates increases are impacting the property line, which will lead to an increase in premiums.
On the other hand, everything apart from property is tracking in the right direction for buyers. Marsh's index shows that overall rates in the Pacific market, with Australia accounting for 80% of renewals, have been rising at a slower pace since reaching a peak of 22% in the fourth quarter of 2020. Meanwhile, casualty rates increased by 10% in the December quarter, while financial and professional lines flattened at 0% after a 4% rise.
