Commercial insurance rates decline for first time in seven years during Q3: Marsh

Marsh’s Global Insurance Market Index has revealed that commercial insurance rates fell 1% in Q3 of 2024, the first time the index has recorded a quarterly decline since Q3 of 2017.

According to Marsh, the insurance broker, risk advisor and business of Marsh McLennan, this result is a continuation of the moderating rate trend, which is largely being driven by increased competition among insurers in the global property market.

Pat Donnelly, President, Marsh Specialty and Global Placement, Marsh, commented, “In the third quarter, for the first time in seven years, we saw a decline in the global composite rate, with three of the four major product lines experiencing a decrease, which is a positive development for our clients.

“We are watching the markets closely for any impacts from the recent devastating storms during the North American hurricane season, and continue to offer support to our clients and the broader communities affected by them.”

On average, rates in Q3 of 2024 reportedly decreased in the Pacific by 6%, in the UK by 5%, in Asia by 4%, in Canada by 3%, and in the India, Middle East, and Africa region by 2%.

Meanwhile, Rates increased by 3% in the US and in the Latin America and the Caribbean region (LAC) and were flat in Europe.

Marsh’s Global Insurance Market Index also found that property insurance rates globally fell 2%, after being flat in Q2 of 2024 and experiencing a 3% increase in Q1 of 2024. Rates declined in the US, UK, Canada, Asia, Pacific, and IMEA, but increased in Europe, and LAC.

At the same time, casualty line rates increased 6% globally in Q3 of 2024, having risen by 3% in each of the previous seven quarters, which is said to have been largely driven by concerns around large jury awards in US courts.

As for cyber insurance, rates decreased by 6% globally in Q3 of 2024, the same rate of decrease as the previous two quarters, with decreases in every region.

“More non-cyber policies contained cyber exclusions, which led to increased focus on ways to address potential coverage gaps for property damage or bodily injury caused by a cyber event,” Marsh added.

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