Property insurance rates in the United States are leveling out in 2012, according to a recent study completed by Marsh. (A large property insurance broker)
Even though we didn't see any large natural catastrophes during the start of the year, rates are still slightly increasing due to many factors in a variety of geographic areas. Rates are seen to be leveling out in 2012 because the increases have been minimal this year.
It looks like one of the reasons why the property insurance rates are still going up in small increments was due to the insured losses that were offered in 2011. This was according to Marsh's "Global Insurance Market Quarterly Briefing: First Quarter 2012."
Many of these losses are showing up in risk areas like business interruption, where insurance companies are being very cautious in how they underwrite each individual property case, thus taking on less risk.
Additionally, many changes offered in 2011 risk models used by insurance companies will probably slow down premium increases in the upcoming months.
Premiums in the United States for catastrophic-exposed risks increased between 5 and 25 percent, while most of the property insured in non-catastrophic areas only went up 5 to 10 percent.
“The global commercial property insurance market is continuing to show signs of upwards rate trends, especially for catastrophe-exposed risks,” said Dean Klisura, U.S. Risk Practices Leader, Marsh.
Marsh deals with a variety of insured properties throughout the United States. Do you fill this report is accurate for your situation. How much were your home insurance premiums increased this year at time of renewal? We would like consumers to give us an idea in how they feel about increases of insurance premiums. Let us know how feel today, comment below.