Q3 2024
Pacific rates decline
Insurance rates in the Pacific region declined 6% in the third quarter of 2024.
Pacific third quarter 2024
Pacific composite insurance rate change
Pacific property
Property rates decline for second consecutive quarter
Property insurance rates declined 6%.
- Competition increased, including among domestic insurers, with medium-sized clients generally attracting insurer interest.
- Long-term agreements (LTAs) continued to be offered to many clients; some included reductions in year two.
- Claims-impacted and catastrophe (CAT)-exposed organisations typically continued to experience rate increases.
Pacific casualty
Casualty rates flat
Casualty insurance rates were flat in the third quarter.
- Insurer capacity generally increased.
- Underwriters continued to scrutinise areas of concern including per- polyfluoroalkyl substances (PFAS); US-domiciled risks, particularly auto liability; and organisations with losses.
Pacific financial and professional lines
Financial and professional lines rates decline
Financial and professional lines pricing decreased 14%.
- Decreases in directors and officers (D&O) liability insurance rates were experienced by many clients.
- Rate reductions for public D&O were steeper compared to private D&O.
- There was strong competition among legacy insurers and new market entrants.
- D&O liability claims activity remained low.
- Capacity for all financial and professional lines remained plentiful; however, it was more difficult to renew with broader coverage and lower retentions.
- LTAs were offered in many cases.
Cyber insurance rates continue to decline
Cyber insurance rates decreased 11%.
- Cyber capacity remained ample, and competition on primary and lower attachments drove rate reductions.
- Insurers demonstrated willingness to negotiate on critical suppliers and various coverages within cyber policies, including betterment, business interruption, and “bricking” rates, which refers to hardware that requires replacement after an event.
- LTAs were offered in some cases.
- Underwriters focused on supply chain risk, privacy regulations, and ransomware.
- Some clients increased their limits.
- Financial exposure from a cyber event remained a point of discussion during underwriting meetings.
Our rates reflect the segment mix of Marsh’s client portfolio.