A softer global reinsurance market and owners’ efforts to mitigate earthquake risk have led to rate reductions for corporate property, according to Marsh New Zealand.

Premiums fell in the first half and clients can now get improved coverage, it says in a market update.

“It would appear most underwriters have put some of the impacts of the Canterbury earthquakes firmly in their rearview mirror,” it says.

Head of Placement Services Nathan Richmond says improved terms have yet to flow into the SME and mid-market spaces, but he believes they will.

“The market appears to be in a two-tier mode at present,” he told insuranceNEWS.com.au.

Mr Richmond says underwriters are competing for the best corporate risk in Auckland and Wellington, and there is appetite for Christchurch property because of the focus on resilience in the rebuild and the quality of information owners can provide.

Building owners are taking time to understand soil conditions, engineering and architecture, he says.

“They have put all the engineering processes in place to ensure they have a well-built, seismically strong building, and that has been looked at very positively by the insurance market.”

Following premium rises of up to 1000% after the Christchurch quakes most clients are now banking savings from lower premiums, but some are buying more cover.

Mr Richmond says it is impossible to give an average figure for rate reductions because each risk differs.