Global commercial insurance rates down 2% in Q4’24: Marsh

After seven years of rate increases, global commercial insurance rates declined for the second consecutive quarter in Q4 2024, by 2% following a 1% fall in Q3, continuing the moderating trend seen in the Marsh Global Insurance Market Index since Q1 2021.

The analysis from insurance broker Marsh shows that during the final quarter of last year, property insurance rates fell by 3% globally, with the largest decrease experienced in the Pacific region at 8%, while the US and UK declined by 4%, as Canada, Latin America and the Caribbean, and Asia all saw low single-digit decreases.

Financial and professional lines rates decreased by 6% globally, with declines seen in every region. This was also the case for cyber insurance, which saw rates fall 7% globally.

In contrast to these declines, casualty insurance rates increased globally by 4% in Q4’24, although this is lower than the 6% rise seen in Q3’24. U.S. casualty rates saw the largest increase at 7%, reports Marsh, driven largely by excess/umbrella business. Latin America and the Caribbean experienced a 5% increase, and all other regions ranged from 2% declines to 1% increases.

By region, the Pacific saw the steepest rate decline in Q4’24 at 8%, followed by a 5% decrease in the UK, a 3% decrease in Asia, and a 2% decrease in Canada and Europe. Somewhat offsetting this, Latin America and the Caribbean, and India, the Middle East and Africa experienced rate increases of 1%. In the U.S., rate increases were flat in Q4’24, compared with a 3% rise in the prior quarter.

According to Marsh, the moderating rate trend is being driven by intensified competition in commercial property insurance, as well as a moderation of casualty rate increases, stabilising pricing in financial lines, and then accelerated rate reductions for cyber business.

“The softening of rates across property, financial lines and cyber are a positive development for clients, while the challenges in other areas of the market, particularly in US casualty, are acute. We are committed to helping clients manage costs, protect their balance sheets, and successfully navigate the evolving market conditions,” said John Donnelly, Global Head of Placement, Marsh.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.