Rates for commercial property insurance continued to firm in the second quarter, according to a report from global insurance broker Marsh. Among companies that renewed their property insurance during the second quarter, 61% paid increased rates, while 25% saw their rates decrease and 14% remained stable. The average rate for property insurance increased 3.1% in the second quarter.
Marsh clients with 25% or more of their total insurable value in earthquake or wind zones, also known as catastrophe exposure, saw greater increases than average. Those with heavy catastrophe exposure experienced increases of more than 20%.
Total insurable values increased 1.9% on average for all accounts. Moderate rate increases are expected to continue this year, according to the report.