Rates in the global insurance market are generally firming,according to the recently launched Marsh Risk Management GlobalInsurance Index. In the second quarter, renewal rates were up 1.4%from the same period last year.

The index tracks rate changes for Marsh clients in 20 majorcountries that renewed their casualty, property or financial andprofessional insurance coverage during the quarter.

In the U.S., the value of average property risk exposuresincreased 1.9% in the second quarter, compared with a 1.3% increasein the first quarter. Roughly 60% of U.S. companies saw an increasein their property rates.

According to the report, increasing property insurance ratesresulted from losses from last year's catastrophes, increased focuson the quality of data provided by insureds, rising attritionallosses and changes to the methods insurers use to calculaterisk-adjusted cost of capital. Rates increased significantly inregions affected by catastrophes, but regions without catastrophiclosses saw rates stabilize. Rates for directors and officersliability insurance stabilized after a decade of decline.

Reliance on technology has brought changes for the insurancemarket, with insurers expanding privacy liability insurance toadjust to the growth of cloud computing, which increases riskbecause it involves outsourcing information and software to a thirdparty. By the end of 2012, 20% of companies are projected to beusing cloud computing to deliver the majority of their software,according to a survey by Cisco Systems.

While cyber insurance often provides good coverage for computersthemselves, “they've been a little late to the dance in dealingwith the risks associated with what happens when you startoutsourcing things,” says Bob Parisi, a senior vice president atMarsh who deals with network security and privacy practice.

Yet pricing for cyber insurance has remained mostly flat with somany new insurers entering the market.

Social media usage has also affected company risk profiles,forcing insurers to consider infringement of intellectual property,Internet usage policies and balancing employees' personal andwork-related activities.

“As a risk factor, it can do a lot of it has the ability tocause a lot of people substantial angst,” Parisi says about socialmedia, noting the liabilities involved in password security issues,peer-to-peer sharing or obtaining employee information onFacebook.