Insurers offering wider cover for same rate, says Aon

As premium rates continue to fall, insurers are taking less premium for more risk, leading to significant concern about sustaining their profitability levels, according to Aon’s “2006 European Property, Liability and D&O Report”, which found that an overwhelming majority of insurers have reduced rates over the last 12 months and many now offer broader cover to fend off the competition. The situation is set to get worse for insurers as nearly half across property and liability business areas expect to give further rate reductions in 2007.