It has been predicted that the soft market currently curbing industry profit is settling in for the long haul, with nose-diving premiums putting pressure on insurers to perform more than ever.
Marsh has released its 2015 Insurance Market Mid-Year Update predicting current drivers of the soft market to continue despite insurers anticipating a break in slow pace.
“There appears no end in sight to the soft market conditions, driven by the combination of new capital, surplus capacity and the lack of catastrophes,” the report states.
“For the third consecutive year H1 natural disaster losses were below the recent 10-year H1 average (US$12 billion versus US$27 billion).
“This benign loss environment is the major contributor to insurers’ strong profitability and, ultimately, the favourable market conditions for buyers.”
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