The latest Global Insurance Market Index from Marsh points to a modest 1% rise in global commercial insurance rates in the first quarter of 2024, indicating a slowdown from the 2% increase observed in the last quarter of 2023.
Despite the overall jump, the report revealed a trend of generally stable or slightly declining rates. Notably, the financial, professional, and cyber insurance sectors showed continued rate decreases while the global property insurance market witnessed increased competition.
Regionally, rate movements varied, with decreases averaging 2% across the UK, Asia, the Pacific, Canada, and the regions of India, the Middle East, and Africa. In contrast, rates climbed by 3% in the US and Europe, and by a more substantial 5% in Latin America and the Caribbean.
The index also highlighted specific trends across different insurance categories. Property insurance rates globally rose by an average of 3% in Q1 of 2024, a drop from the 6% increase in the previous quarter. Casualty insurance rates continued to rise by 3%, consistent with the trend over the past five quarters.
Financial and professional lines saw a 7% decrease in rates for the seventh consecutive quarter, outpacing the 6% decline noted in the previous period. Cyber insurance rates globally decreased by 6%, a bigger fall compared to 3% in the prior quarter.
Pat Donnelly, president of specialty and global placement at Marsh, commented on the findings: “A continued moderation in insurance rates, and an increased appetite among insurers particularly for well-managed risks, will be welcomed by clients that continue to face major global economic and geopolitical uncertainty.
“In a rapidly changing risk landscape, organisations will be under pressure to improve their risk management capabilities and make themselves more resilient to global shocks. We are working closely with our clients to ensure they have the right tools to navigate these challenges successfully and benefit from the continued improvement in market conditions.”
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