Global insurance rates have decreased for 16 consecutive quarters - but the decreases have moderated for five straight quarters. This was revealed by major brokerage
Marsh’s Global Insurance Market Index, a proprietary measure of global commercial renewal rates.
The index encompasses the world’s major insurance markets and makes up 90% of Marsh’s premium.
According to the report, global insurance rate decreases have moderated for the fifth consecutive quarter, with a dip of 2.3%, compared to the previous quarter’s 3.1% decrease.
The quarter also saw a global moderation of decreases in property & casualty, financial, and professional lines. Global casualty rate decreases moderated for a three-quarter streak at 0.6%, mostly because of the first increase in US casualty renewal rates since the third quarter of 2014.
Global property rates decreased by an average of 3.6% for 1Q 2017, compared to a 4.2% decline in 4Q 2016, while financial and professional lines saw a decrease of 2.6%, compared to 3.0% in the previous quarter.
Dean Klisura, global industry specialties and placement leader at Marsh, commented on the developments, saying: “The first quarter of 2017 was the sixteenth consecutive quarter in which average renewal rates declined. This trend continues to be driven by a marketplace with significant capacity and a competitive underwriting environment.”
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Soft market will turn… eventually
