Global commercial insurance rates increased by 1% in the first quarter of 2024 (down from a 2% increase in Q4 2023), 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.
Rates continued to be relatively consistent, with most regions experiencing small decreases in Q1. This was largely driven by a strengthening of the trend for decreases in financial and professional and cyber lines and 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%. Rates increased in the US and Europe by 3%, and in Latin America and the Caribbean by 5%.
Other findings included:
- Global property insurance rates were up 3%, on average, in the first quarter of 2024, compared to a 6% increase in the previous quarter. In the US, companies 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.
- Casualty insurance rates increased on average by 3%, the same as the previous five quarters, largely due to concerns about the size of jury awards in the US.
- 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 in the US, UK, Pacific, and Canada – average rates decreased by 7% in the first quarter, compared to 6% decline in the previous quarter.
- Globally, cyber insurance rates decreased by 6%, compared to a 3% decrease in the prior quarter. Insurers are increasingly focused on the strength of organizations’ cybersecurity controls, typically looking for year-over-year improvements in cyber resilience.
Commenting on the report, Pat Donnelly, President, Marsh Specialty and Global Placement, Marsh, said: “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.”