Demand on the rise for third liability insurance

European and African companies along with those operating in the MENA region are keener on purchasing third party liability covers for fear of more considerable claims in periods of economic crises. Compared to the past situation, demand increase and competitive prices have encouraged insurers to underwrite covers comprising larger limits. Engagements have gone up by 7% in this class of business throughout the MENA region since 2008 unlike the situation in the three previous years when they were declining. During the same period, these engagements have risen by 40% in North Europe. According to Marsh, prices have been pushed downwards by 22% since 2006. However, pharmaceutical firms with exposure to USA, those detaining long-term engagements with exposure to industrial sickness or those having exposure above their turnover are perceived as riskier.