Willis projects moderate rate hikes in key insurance lines

Catastrophe-exposed properties are seeing insurance premium increases as high as 15%, according to a report from Willis Group Holdings.

While cat-exposed property rate hikes have been in the 5% to 15% range over the last six months, non-cat exposed property renewals are “flat,” Willis noted.

“While Willis expects rates for catastrophe risk to continue to climb throughout 2012, abundant capacity and the lingering weak economy have tempered upward pressure on a broader level,” the broker stated in its spring 2012 Marketplace Realities report.

In primary/umbrella casualty lines, Willis said more than 75% of insureds are seeing modest rate increases on renewal, “driven by gradual increases in revenues and rating exposures.” Modest rate increases were classified from 2.5% to 7.5%.