Guy Carpenter broke down the typical insurance rate drops — or in the case of Marine & Energy and Credit, Bond & Political Risk, rate increases — companies are seeing so far in 2011.
Insurance buyers should enjoy the reduced premiums now — because the soft market won’t last forever.
Despite the declines, “2010 will prove to be the beginning to the end of a six-year soft market cycle,” MarketScout CEO Richard Kerr said in a statement. “While rates were still down for all of 2010, they did moderate and held steady at smaller reductions in a tight range,” declining 3% to 5%.
“We anticipate slight reductions on competitively marketed placements for the first six months of 2011 and flat renewals for accounts not under market pressure,” Mr. Kerr said. “By year-end 2011, the longest soft market period in the last 70 years will finally come to a close.”
What’s the saying? All things end badly. Otherwise they wouldn’t end.
Get it while the getting’s good.
Thanks for sharing this interesting report. It seems it is the right time to renew insurance. This lower rates won’t last forever.