Global commercial insurance rates were reportedly flat in Q2 of 2024, down from a 1% increase in Q1, ending the 26 consecutive quarter streak of increasing rates, as per Marsh’s Global Insurance Market Index.
According to Marsh, Q2 of 2024 marks the first time in nearly seven years that the global composite rate has not increased.
“The continued moderation of rates was largely driven by increasing competition among insurers in the global property market,” the firm explained.
The Global Insurance Market Index revealed that on average, rates decreased in Canada and the Pacific by 5%, and in the UK and Asia regions by 3%.
Meanwhile, rates increased in the US and Europe by 1%, and in the Latin America and the Caribbean and India, Middle East, and Africa (IMEA) regions by 4%.
Pat Donnelly, President, Marsh Specialty and Global Placement, Marsh, commented, “We have seen the continued moderation of the global composite rate over the past few years, with a stable composite in Q2 2024, which is a positive movement for our clients.
“As there remain rate increases in some lines, we see significant opportunities to help clients navigate the complexity they’re facing today and support their risk financing decisions.”
Elsewhere, Marsh’s Global Insurance Market Index found that property insurance rates globally were flat in Q2 2024 compared to 3% and 6% average increases in Q1 2024 and Q4 2023, and either declined or moderated in every region except IMEA.
“Property insurers and owners alike are closely watching the Atlantic hurricane season to see if any substantial storm activity might significantly impact their business,” Marsh said.
At the same time, casualty lines rates increased 3% globally in Q2 2024, the same as the previous six quarters.
Canada and Asia are said to have shown decreases while the UK and IMEA were flat. Marsh noted that insurers remain concerned with large jury awards in US courts.
As for financial and professional lines, rates decreased for the eighth consecutive quarter in Q2 2024, with rate decreases recorded in every region.
In the US, UK, Canada, and Europe, the rates decelerated in Q2 2024 as compared to the previous quarter, while accelerated in other regions.
Turning to cyber insurance, rates reportedly decreased 6% globally in Q2 2024 with decreases in every region.
