Among property insurers, rates could fall 10 percent for CAT-exposed risks in 2014 and drop more steeply (up to 12.5 percent) for non-CAT risks due to improved CAT modeling, an ongoing oversupply of capacity, decreasing reinsurance rates and light 2013 loss activity, which has been a big part of combined loss ratios between 75 and 85 percent for many insurers, according to a new Willis report, titled “Marketplace Realities 2014: Innovation and Continuity.”
Workers’ compensation rates, on the other hand, are expected to rise 2.5 to 10 percent, and up to 20 percent in California, as questions surrounding health care reform’s effects on medical pricing offsets the sector’s efforts to reform and fine-tune state-specific operations.
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