The global property insurance market showed signs of firming in the first quarter of 2012 as insurers attempted to recoup losses incurred from extensive catastrophes in 2011. In 2011, catastrophe-exposed risks typically experienced premium rate increases, while rates remained generally flat for insureds without such exposures. In the first quarter of 2012, however, rates generally rose in both classes in most geographies.

Rates are likely to rise moderately for both catastrophe and non catastrophe-exposed risks, despite an absence of major losses in Q1.

According to the report:

• Insurers are more wary about writing contingent business interruption coverage following last year’s losses.
• Capacity remains plentiful with no significant withdrawal in Q1.
• More U.S. insureds saw rate increases than decreases or flat renewals for property risks.