Global insurance rates fall 0.9% in 2024, first drop since 2017: Broker

(Reuters) – Global insurance premiums fell 0.9% last year as the market became more competitive after years of rate rises, London-based Howden Broking Group Ltd. said in a report on Thursday.

Insurers have consistently raised rates in recent years in response to losses from wars and natural catastrophes and due to inflationary pressures.

This has made them profitable, encouraging additional players into the market, pushing down prices.

Reinsurance rates also fell on Jan. 1, the industry’s preferred policy renewal date, with global property catastrophe reinsurance rates down by 8%, Howden said.

“Our clients are beginning to see relief from the pricing pressures of the last three years,” said Tim Ronda, chief executive of Howden Re, Howden’s reinsurance business.

Global property catastrophe reinsurance rates fell 5% to 15% on Jan. 1 for portfolios that have not suffered losses, reinsurance broker Guy Carpenter & Co. LLC said earlier this week.

However, Howden said this year could be volatile for insurers as they absorb most of the losses from natural catastrophes, such as hurricanes and wildfires themselves, with reinsurers continuing to limit the amount of cover they provide.