US commercial rates up 3% in Q3: Marsh

U.S. commercial insurance rates rose 3% on average in the third quarter, accelerating from an average 1% increase in the second quarter, driven by a 10% increase in casualty rates, according to Marsh LLC’s quarterly pricing index issued Thursday.

U.S. rates increased even as rates globally fell by 1% — the first time the index has recorded a quarterly decline since the third quarter of 2017.

Among major coverage lines, umbrella and excess liability rates rose 21%, compared with a 10% increase in the second quarter; property rates fell by 1%, compared with a 2% increase; and financial and professional lines fell 3%, similar to the prior quarter’s decline.

Within financial and professional lines, public company directors and officers liability rates and cyber liability rates fell 4%, compared with a 5% decline in the second quarter.

The decrease in global rates came as rates overall continued to moderate, due to increased competition in the property insurance market.

In Latin America and the Caribbean rates rose an average 3%, compared with a 4% increase in the second quarter; in Canada rates fell 3%, compared with a 5% decrease; in Europe, rates were flat, compared with a 1% increase; United Kingdom rates fell 5%, compared with a 3% decrease; in the Pacific region rates fell 6%, compared with a 5% decrease; and in Asia rates declined 4%, compared with a 3% decrease.