New York | October 23, 2024
According to the Global Insurance Market Index released today by Marsh, the world’s leading insurance broker and risk advisor and a business of Marsh McLennan (NYSE: MMC), global commercial insurance rates fell 1% in the third quarter of 2024, the first time the index has recorded a quarterly decline since the third quarter of 2017.
The result is a continuation of the moderating rate trend, which is largely being driven by increased competition among insurers in the global property market.
On average, rates decreased in the Pacific by 6%, in the UK by 5%, in Asia by 4%, in Canada by 3%, and in the India, Middle East, and Africa region by 2%. Rates increased by 3% in the US and in the Latin America and the Caribbean (LAC) region, and were flat in Europe.
Other findings included:
- Property insurance rates globally fell 2%, after being flat in Q2 2024 and experiencing a 3% increase in Q1 2024. Rates declined in the US, UK, Canada, Asia, Pacific, and IMEA, but increased in Europe, and LAC. Insureds with assets concentrated in catastrophe zones such as the Gulf of Mexico, the US Atlantic coast, or California, as well as those that had recently experienced higher than average rate increases, generally saw above average rate decreases. However, this was before the recent Gulf hurricanes.
- Casualty lines rates increased 6% globally, having risen by 3% in each of the previous seven quarters, largely driven by concerns around large jury awards in US courts.
- Financial and professional lines rates decreased by 7% globally — the ninth consecutive quarter of declines — with rate decreases recorded in every region.
- Cyber insurance rates decreased 6% globally – the same rate of decrease as the previous two quarters – with decreases in every region. More non-cyber policies contained cyber exclusions, which led to increased focus on ways to address potential coverage gaps for property damage or bodily injury caused by a cyber event.
Commenting on the report, Pat Donnelly, President, Marsh Specialty and Global Placement, Marsh, said: “In the third quarter, for the first time in seven years, we saw a decline in the global composite rate, with three of the four major product lines experiencing a decrease, which is a positive development for our clients. We are watching the markets closely for any impacts from the recent devastating storms during the North American hurricane season, and continue to offer support to our clients and the broader communities affected by them.”
