Global commercial insurance rates climbed 1% in the first quarter of 2024, down from the 2% increase that was seen in the fourth quarter of 2023, according to the Global Insurance Market Index released by insurance broker and risk advisor and a business of Marsh McLennan, Marsh.
Rates continued to be relatively consistent, with most regions experiencing small decreases in Q1.
Marsh noted that this was largely driven by a strengthening of the trend for decreases in financial and professional and cyber lines, as well as increasing competition among insurers in the global property market.
On average, rates declined in the UK, Asia, Pacific, Canada and in India, Middle East & Africa regions by 2%.
However, rates did increase in the US and Europe by 3%, as well as Latin America and the Caribbean by 5%.
Additionally, in Q124, global property insurance rates were up 3%, on average, compared to a 6% increase in the previous quarter.
Across the US, organisations with concentrations of assets in catastrophe zones such as the Gulf of Mexico, Atlantic coast, and California have begun to see lower increases or even decreases in rates, compared to higher increases in recent years.
Another key figure to note, is that casualty insurance rates increased on average by 3%, the same as the previous five quarters. This was largely due to concerns about the size of jury awards in the US.
Importantly, for the seventh consecutive quarter, the overall average pricing for financial and professional lines fell.
Driven by rate reductions and increased competition for business – particularly across the US, UK, Pacific, and Canada – average rates decreased by 7% in the first quarter, compared to a 6% decline seen in the previous quarter, Marsh explained.
Globally, cyber insurance rates witnessed a decrease of 6%, compared to a 3% decrease seen in the prior quarter.
Pat Donnelly, President, Marsh Specialty and Global Placement, Marsh, commented: “A continued moderation in insurance rates, and an increased appetite among insurers particularly for well-managed risks, will be welcomed by clients that continue to face major global economic and geopolitical uncertainty.
“In a rapidly changing risk landscape, organizations will be under pressure to improve their risk management capabilities and make themselves more resilient to global shocks. We are working closely with our clients to ensure they have the right tools to navigate these challenges successfully and benefit from the continued improvement in market conditions.”
