Joe Plumeri, chairman and CEO of Willis Group, is no longer planning for a traditional market turn -- a “rising tide that lifts all boats.”
Instead, he sees a future where refined tools are used to measure individual risks, allowing carriers to drill down into individual sectors and subsectors of various industries, with pricing based on a more detailed understanding of the marketplace.
In line with the spirit of Plumeri’s opening statement, the Willis report predicts that commercial-insurance buyers in 2013 will see a mix of rising and falling insurance rates across varying sectors.
For property risks, the report says that 2012 has been a year of recovery for insurers after $116 billion in global losses in 2011. Most insurers are posting combined ratios in the low 90s compared to over 100 last year, says Willis, and reinsurers say they expect rates to remain flat into next year.