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Digital report

Pacific Insurance Market Rates

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the Pacific insurance market.

Q1 2024

Pacific rates decrease, led by financial and professional lines

Insurance rates in the Pacific region declined 2% in the first quarter of 2024. 

Pacific first quarter 2024

Pacific composite insurance rate change 

Pacific property

Property rates stabilize

Property insurance rates were flat for the second consecutive quarter, following 26 quarters of increases.

  • Insurers were actively seeking new opportunities.
  • Clients with risk improvements or histories with no or limited losses typically experienced better outcomes.
  • Long term agreements (LTAs) were offered to some organizations, generally with reductions in year two.
  • Organizations with histories of significant losses and large natural catastrophe exposures generally saw greater increases, as did those facing certain macro issues, such as those related to environmental, social, and governance (ESG).   

Pacific casualty

Casualty rates decline for fourth consecutive quarter

Casualty insurance rates rose 3%.

  • Insurers deployed new capacity, contributing to improved results and increased options for buyers.
  • Underwriting scrutiny continued, particularly in areas such as contractor injury, US exposures, and per- and polyfluoroalkyl (PFAS) substances. 

Pacific financial and professional lines 

D&O rate decline moderates

Financial and professional lines rates decreased 10%. 

  • Directors and officers (D&O) liability insurance continued to decline.
  • The number of new market entrants slowed.
  • LTAs were offered to some companies.
  • The first class-action lawsuit related to artificial intelligence has been commenced, leading to increased scrutiny on clients' disclosures and use of AI.

Cybersecurity controls remain a key to rates

Cyber insurance rates declined 2%.

  • Greater competition among insurers led to more coverage and retention options.
  • Underwriters focused on supply chain risk, dynamic privacy regulations, and the continued threat of ransomware.
  • Clients showed interest in exploring cyber property damage cover.
  • Underwriters continued to scrutinize risk management and cybersecurity controls, especially regarding the mitigation of ransomware threats.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”