New York | 05 February, 2025
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 2% in the fourth quarter of 2024 following a 1% decline in Q3 2024 – and marking the second consecutive quarterly decrease following seven years of rising rates.
The result continues the moderating rate trend first seen in the Index in Q1 2021, which is being driven by intensified competition in commercial property insurance, a moderation of casualty rate increases, stabilizing pricing in financial lines, and accelerated rate reductions for cyber risks.
By region, Pacific (-8%), UK (-5%), Asia (-3%), Europe (-2%), and Canada (-2%) all experienced year-over-year composite rate decreases in Q4, while Latin America and the Caribbean (LAC) and India, Middle East, and Africa (IMEA) experienced increases of 1%. Rates in the US were flat, following a 3% increase in Q3 2024.
Other findings included:
- Property rates declined 3% globally, following a 2% decline in Q3 2024. The Pacific region experienced the largest decrease, at 8%; the US and UK declined 4%; while Canada, LAC, and Asia recorded low single-digit decreases. Property rates were flat in Europe, and IMEA experienced a 3% increase in Q4. The global property market remains sensitive to loss events, particularly the ongoing Los Angeles wildfires, which will likely impact aggregate catastrophe losses in 2025.
- Casualty rates increased 4% globally, following a 6% rise in the previous quarter. US casualty rates continued to increase more than in other regions (7%). LAC recorded a 5% increase while the other regions ranged from 2% declines to 1% increases.
- Financial and professional lines rates decreased by 6% globally – the tenth consecutive quarter of declines – with rate decreases recorded in every region as a result of robust competition and available capacity.
- Cyber insurance rates decreased 7% globally – following a 6% decline in the previous quarter – with decreases in every region driven by strong competition among both incumbent and new insurers as well as continued improvements in cybersecurity at many companies.
Commenting on the report, John Donnelly, Global Head of Placement, Marsh, said: “The softening of rates across property, financial lines and cyber are a positive development for clients, while the challenges in other areas of the market, particularly in US casualty, are acute. We are committed to helping clients manage costs, protect their balance sheets, and successfully navigate the evolving market conditions.”
