Property insurance rates mixed for 2013

Business clients looking to buy insurance in coming months can expect to see a mix of rising and falling commercial property/casualty rates in 2013, says a new report by Willis Group Holdings.

The 2013 Marketplace Realities report found modest rate increases will be applied to casualty, executive risks and several specialty insurance lines. Declining rates for non-catastrophe-exposed property programs and other risk areas will help balance these increases.

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For the property insurance market, 2012 has been a year of recovery from record-setting losses in 2011. But predictions of a hard market have not been borne out.

Issues such as low underwriting losses and the lingering weak economy are creating a flat marketplace.

The report also found insurance buyers with catastrophe-exposed property risks can expect flat renewals, while buyers without this problem will experience decreases in the 5-10% range.

Casualty insurance lines are experiencing some upward movement, with general liability customers facing rate increases in the 3-7.5% range.

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Overall, Willis Group Chairman and CEO Joe Plumeri says clients buying individual insurance will be most impacted by micro trends that affect their specific industry, sub-industry and geographic region in 2013. They have to carefully search for the best possible product that fits their specific needs.

“There are still big savings to be had, even in a market that is firming after years of soft rates. We just have to work a little harder and look a little deeper to find them,” Plumeri says.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.