Soft commercial insurance market conditions persisted throughout Europe, the Middle East and Africa (EMEA) in 2010 and are set to continue into 2011, according to a comprehensive report published today by Marsh.

Key commercial insurance market drivers over recent years – including intense competition among insurers, abundant capacity, and relatively few insured catastrophe losses – continued through 2010 and are forming market conditions for 2011, Marsh said in its report, Approach Your Risk with Clear Direction: Marsh’s 2011 Europe, Middle East and Africa Insurance Market Report. The annual report provides detailed information on commercial insurance market trends and conditions for major classes of business and industry and specialty lines.

“Despite a challenging economic environment, commercial insurance market conditions were largely favourable for insurance buyers throughout 2010,” said Bruce Trigg, Head of Marsh’s Risk Management Practice for Continental Europe, the Middle East and Africa.

“We expect conditions to remain generally positive for buyers in 2011. Those able to supply high-quality data and who have favourable loss histories and limited catastrophe exposures will obtain the best deals.”

Mr Trigg added that the impact of Solvency II, which is set to be implemented in 2013, may affect rates: “Changes to insurers’ documentation, transparency and disclosure requirements will be costly and, as a result, underwriters may attempt to adjust rates to reflect the cost of Solvency II compliance.”

The complete Insurance Market report is now available. Marsh is also publishing Insurance Market Reports for the US; Canada; Asia; Pacific; and, Latin America and the Caribbean. Marsh’s Multinational Client Service will also publish a report on issues for companies in that sector.