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US Insurance Market Rates

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

Q4 2024

US rates flat as property insurance rate declines

Insurance rates in the fourth quarter of 2024 in the US were flat.

US fourth quarter 2024

US composite insurance rate change 

US property

US property insurance rate declines; capacity and competition increase

Property insurance rates declined 4%, compared to a decline of 1% in the prior quarter.

  • Increased insurer capacity and competition were driven by strong financial performance in the property sector over the past three years, along with cost reductions and stable reinsurance structures.
  • Insurers began to show greater underwriting flexibility and considered movements favorable to insureds on sub-limits, coverage definitions, and natural catastrophe deductibles.
  • Clients in high-risk areas, like the Gulf of Mexico, Atlantic coast, or California, experienced above-average rate decreases due to increased capacity and new capital.
  • Insurer scrutiny of valuation and COPE data was generally lessened compared to previous years.
  • Clients with higher loss activity and poorer submission quality were likely to face less favorable renewal outcomes.
  • Insurer appetite for business increased in sectors including warehousing, food and beverage, and technical risk, which had seen sizable rate increases over the past five years.
  • Clients scrutinized insurance costs and conducted cost-benefit analyses to assess self-insurance and alternative risk transfer solutions.
  • The property market remains sensitive to loss events, particularly the ongoing Los Angeles wildfires, which will impact aggregate catastrophe losses in 2025.

US casualty

Casualty rate increases driven by auto liability and jury verdicts

Casualty insurance rates increased 7%; excluding workers’ compensation, the increase was 11%.

  • Workers’ compensation continued to be the primary casualty line of interest for most insurers; however, concerns continued regarding increasing reserves and rising medical costs.
  • Auto liability continued to pose profitability challenges for insurers due to larger jury verdicts nationwide and rising auto physical damage costs.
  • General liability rates remained relatively stable, with average increases of approximately 3%.
    • Loss activity in certain industry classes — including real estate, hospitality, and public entities — drove larger increases.
    • Coverage restrictions continued to increase, including per- and polyfluoroalkyl substances (PFAS) exclusions, biometric restrictions, and cyber exclusions, with real estate and hospitality organizations seeing additional exclusions related to sexual abuse, human trafficking, and assault.
  • In the umbrella and excess liability market, risk-adjusted rates increased 15% compared to 21% in the prior quarter. (Note: Where there was no program structure change, rates increased 9% and 20%, respectively.)
    • Rates for lead umbrella programs with favorable loss experience and low-hazard exposure trended higher by 12% to 15%.
    • Clients with adverse loss development and exposure concerns typically experienced changes to limits, attachments, coverage, and/or pricing, with rate increases exceeding 30%. Many clients sought alternative program structures such as captives and structured deals.
    • Some insurers capped individual risk capacity at a maximum of US$15 million (median US$10 million) due to adverse developments in the US litigation environment, even in jurisdictions previously viewed as favorable.
    • There has been a shift away from concentrating capacity on a single tower due to the frequency of severe claims, particularly in the auto liability market, where some insurers have raised auto attachment points for fleets of over 100 units.
    • Some insurers limited or excluded coverage for elements such as PFAS, biometric data, sexual abuse and molestation, endocrine disruptors, and geopolitical risks.
    • Premises exposures, once considered low-hazard risks, are now seeing poorer-than-expected claims outcomes.

US financial and professional lines

Financial and professional lines: D&O continues to lead rate decline

Financial and professional lines rates decreased 3%.

  • Directors and officers (D&O) liability rates declined 5%.
    • Pricing for D&O stabilized, with single-digit decreases in both primary and total program rates; the gap between primary and excess layer pricing narrowed.
    • Some insurers either opted out of renewals or reduced capacity due to an inability to renew at current premium levels.
  • Fiduciary insurance rates were generally flat.
    • Insurers responded to lawsuits applying Employee Retirement Income Security Act (ERISA) theories from excessive fee litigation in retirement plans to health plans and pharmacy benefit managers (PBMs).
    • Ongoing ERISA 401(k) excessive fee litigation, including defense costs, settlements, and plaintiffs' fees, continued to drive insurer losses, with a notable trend in improper investment claims.
    • Retentions were a significant concern, with insurers generally seeking minimum retentions between US$1 million and US$10 million for larger plans, due to worries about rapidly increasing defense costs and expert fees.
    • Recent lawsuits regarding pension risk transfer and pension calculations have prompted underwriters to renew their focus on defined benefit plans.
  • Errors and omissions (E&O) rates increased 1% while financial institution (FI) rates decreased 2%.

Cyber rates decrease on abundant capacity

Cyber insurance rates decreased 5%.

  • There was abundant capacity for both primary and excess cyber insurance programs, with additional new capacity anticipated in 2025.
  • Insureds with strong cybersecurity practices typically used premium savings to purchase higher limits, reduce retentions, and shorten waiting periods; about 20% of US clients opted for higher limits in 2024.
  • Claims volume increased in 2024, with over 2,000 claims in the US related to privacy breaches, supply chain issues, and ransomware.
  • While average ransom demands increased, the number of companies paying ransoms declined year over year.
  • Cyber risk continues to evolve; themes include the importance of strong cybersecurity controls, resilience against ransomware threats, awareness of aggregation exposure and third-party risks, the impact of generative AI, and emerging privacy regulations.

Our rates reflect the segment mix of Marsh’s client portfolio.

Regional analysis

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Global Insurance Market Index

02/05/2025

The Global Insurance Market Index is our proprietary measure of global commercial insurance rate change at renewal — providing insights on the world's major insurance markets.
Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

02/05/2025

Insurance rates in the UK declined 5% in the fourth quarter of 2024.
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Global Insurance Market Index

Latin America and Caribbean insurance rates

02/05/2025

Insurance rates in the fourth quarter of 2024 in the LAC region increased 1%.
Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe declined 2% in the fourth quarter of 2024.
Beautiful aerial view of the Sydney Opera house by the bay in Australia. Panoramic view.

Global Insurance Market Index

Pacific insurance rates

Insurance rates in the Pacific region declined 8% in the fourth quarter of 2024.
Shanghai skyline at night

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 3% in the fourth quarter of 2024.
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Canada insurance rates

Insurance rates in Canada declined 2% in the fourth quarter of 2024.
Skyscrapers in Abu Dhabi, United Arab Emirates.

India, Middle East, and Africa insurance rates

Insurance rates in the fourth quarter of 2024 increased 1% in the IMEA region.

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