According to the Global Insurance Market Index released by Marsh, the world’s leading insurance broker and risk advisor, global commercial insurance rates were flat in the second quarter of 2024, down from a 1% increase in the first quarter of 2024.
This marks the first time since the third quarter of 2017 that the global composite rate has not increased. The moderation of rates is largely due to increasing competition among insurers in the global property market.
Average rates decreased by 5% in Canada and the Pacific and by 3% in the UK and Asia regions. Rates increased by 1% in the US and Europe, and by 4% in Latin America, the Caribbean, and the India, Middle East, and Africa (IMEA) regions.
Property insurance rates globally were flat compared to 3% and 6% average increases in Q1 2024 and Q4 2023. Rates either declined or moderated in every region except IMEA. Property insurers and owners are closely watching the Atlantic hurricane season for any substantial storm activity that might impact their business.
Casualty lines rates increased by 3% globally, the same as the previous six quarters. Canada and Asia showed decreases, while the UK and IMEA were flat. Insurers remain concerned with large jury awards in US courts.
Financial and professional lines rates decreased for the eighth consecutive quarter by 5% globally, with rate decreases recorded in every region. In the US, UK, Canada, and Europe, the rates decelerated compared to the previous quarter, while they accelerated in other regions.
Cyber insurance rates decreased by 6% globally, repeating the 6% decrease from the prior quarter, with decreases in every region. Insurers continued to focus on cybersecurity controls, typically looking for year-over-year improvements in cyber resilience.
Pat Donnelly (pictured above), president of Marsh Specialty and global placement, commented on the report, stating that the continued moderation of the global composite rate over the past few years, with a stable composite in Q2 2024, is a positive movement for clients.
“As there remains rate increases in some lines, we see significant opportunities to help clients navigate the complexity they're facing today and support their risk financing decisions,” he said.
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