With the exception of the earthquake in Napa, California, losses have been low. Worldwide property losses totaled $21 billion for the first six months of 2014, compared to $25 billion for the same period in 2013, and an average of $27 billion over the past decade.
Price predictions for catastrophe and non-catastrophe are down 10% to 15%, except for exposures near U.S. coastlines. “There are a limited number of insurers writing these risks on a primary basis and, accordingly, this sector remains challenging,” according to Willis.
In the cyberinsurance market, renewals are mostly flat, except for point-of-sale retailers, which could see rates go up as high as 20%. This is compared to minus-2% to plus-5% for non-point-of-sale retailers.
Markets that are favorable to buyers include marine, at minus-10% to flat; and environmental, with most lines at minus-10% to flat, except for combined environmental and casualty, which could see pricing go up by 25%, Willis said.