Global commercial insurance rates – what’s happening?
Global commercial insurance rates – what’s happening? | Insurance Business Asia
Insurance News
Global commercial insurance rates – what’s happening?
Marsh reports new findings of Global Insurance Market Index
Insurance News
By
Terry Gangcuangco
Marsh has released the latest edition of its Global Insurance Market Index, the broking giant’s proprietary measure of global commercial insurance rate change at renewal.
According to Marsh, global commercial insurance rates increased by 2% in the fourth quarter of 2023. In Q3, the change was a 3% increase.
“Rates continued to be relatively consistent across almost all regions in Q4,” Marsh noted. “As with Q3 and Q2, this was largely driven by a continuation of the trend for pricing decreases in financial and professional lines and a small decrease for rates in the cyber insurance market.
“Moderating rate increases for property risks also contributed to the quarter’s results, with increased competition offsetting the impact of strong demand and ongoing losses.
“On average, rates in Q4 were flat in the UK, Canada, Asia, and Pacific. Rates increased in the US by 3%; in Europe by 4%; in India, Middle East & Africa by 4%; and in Latin America and the Caribbean by 8%.”
On average, global property insurance rates rose by 6% in the fourth quarter; casualty insurance rates were up 3%; rates in financial and professional lines saw a 6% decline; and cyber insurance rates fell by 3%.
“At a time of much global economic uncertainty, clients will welcome the increased stability in insurance rates – especially for property exposures – and increased competition from insurers for well-managed risks,” Pat Donnelly, president of specialty and global placement at Marsh, said in an emailed release.
“With 2024 set to be a year of significant geopolitical and economic challenges, we are working closely with clients to develop solutions that will enable them to become more resilient to global events and to take advantage of improving market conditions.”
The Marsh Global Insurance Market Index, which shows the 25th consecutive quarter of rate increases, can be accessed here.
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