Marsh reveals continued fall of global insurance rates

Decreases may have been moderating but the overall slump continues

Marsh reveals continued fall of global insurance rates

Insurance News

By Gabriel Olano

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.”


Related stories:
Marsh CEO to sleep rough in $25k charity bid
Marsh: Global insurance rates continue decline
Soft market will turn… eventually

 

Keep up with the latest news and events

Join our mailing list, it’s free!