Global commercial insurance rate increases by 2%

Global commercial insurance rate increases by 2% —Marsh

THE Marsh Global Insurance Market Index recently released has disclosed that Global commercial insurance rates increased by two percent in the fourth quarter of 2023 (Q4 2024), down from a three percent increase in Q3, which was the 25th consecutive quarter of rate increases.

The report says rates continued to be relatively consistent across almost all regions in Q4, driven by pricing decreases in financial and professional lines, and cyber, noting that moderating rate increases for property risks also contributed to the quarter’s results, with increased competition offsetting the impact of strong demand and ongoing losses.

Commenting on the findings, Pat Donnelly, President of Marsh Specialty and Global Placement said, “At a time of much global economic uncertainty, clients will welcome the increased stability in insurance rates – especially for property exposures – and increased competition from insurers for well-managed risks.”

Key report findings showed that on average, rates in Q4 were flat in the UK, Canada, Asia, and the Pacific, while rates increased in the US by three percent, in Europe by four percent, in India, the Middle East, and Africa by four percent, and in Latin America and the Caribbean by eight percent.

Global property insurance rates were up six percent, on average, in the fourth quarter of 2023, a slight fall from the seven percent increase in the previous quarter; while casualty insurance rates increased by three percent, the same as the previous four quarters.

For the sixth consecutive quarter, the overall average pricing for financial and professional lines fell, and driven by rate reductions and increased competition for business – particularly in the US, UK, and Pacific – average rates decreased by 6 percent in the fourth quarter, the same as the previous quarter.