Major US risk management group Assurex Global says the commercial insurance middle market – risks with premiums between $US10,000-$15,000 ($15,200-$38,000) – will enjoy lower rate increases and some flat pricing over the next six months.

The survey says the commercial middle market is slowly beginning to stabilise as underwriters take a more aggressive approach to new business and renewals. However, higher deductibles are likely to remain in place over the next six months.

Europe and the Middle East are experiencing “some rate relief”, while Latin America is experiencing general market stability with pockets of capacity and solvency ills. African rates are still firming as clients look to higher deductibles. In Asia and the Pacific Rim, “premiums are up, limits are down, coverage is restricted, and capacity is tight, especially in Japan”.

There’s no good news on liability rates. Directors' and officers' liability (D&O) premium increases are expected to continue as they have for the past six months. Deductibles remain higher and limits lower, with buyers assuming higher deductibles to manage cost. One-third of Assurex Global partners expect D&O premiums to increase more than 25% over the next six months. Another 44% anticipate increases of 10%-25%.

About 70% of the survey respondents expect professional liability premiums to increase by at least 10-25% , and 64% expect other liability premiums to rise 10-25% in the next six months.