Global commercial insurance rates fall for first time since 2017 – Marsh

Global commercial insurance sales fell 1% in the third quarter of 2024, marking the first quarter's decline from the third quarter of 2017, according to the Global Insurance Market Index released by Marsh.

This decline follows a pricing trend, driven primarily by increased competition among insurers in the global property market. According to Marsh, the average prices decreased by 6% in the Pacific region, 5% in the UK, 4% in Asia, 3% in Canada, and 2% in the region of India, Middle East, and Africa (IMEA).

Meanwhile, prices increased by 3% in the US and Latin America and the Caribbean (LAC), while prices remained low in Europe.

The report also highlighted that global property insurance premiums fell 2% after remaining flat in the second quarter of 2024 and rising 3% in the first quarter. Decreases in prices were seen in the US, UK, Canada, Asia, Pacific, and IMEA, while Europe and LAC saw increases.

Companies with assets focused on disaster-prone areas such as the Gulf of Mexico, the US Atlantic coast, or California, as well as those that have previously experienced significant price increases, are down above average. However, this was before the impact of the recent Gulf hurricanes.

Casualty insurance rates rose 6% globally, continuing a seven-quarter trend of 3% increases. This is due in large part to concerns over large awards by US court judges, according to Marsh.

Financial and business lines fell 7% globally, marking the ninth consecutive quarter of declines, with declines recorded across all regions.

Cyber ​​insurance rates also fell by 6% globally, continuing the trend of the past two quarters. All regions reported declines in internet rankings. Additionally, many non-cyber policies include cyber exclusions, leading to an increased focus on addressing potential coverages related to property damage or bodily injury caused by cyber incidents.

Pat Donnelly (pictured above), president of Marsh Specialty and global placement at Marsh, commented on the report, saying that for the first time in seven years, global composite prices are down, with declines in three of the four major product lines.

“We are watching the markets carefully for any impacts from the recent devastating storms during the North American hurricane season, and we continue to provide support to our customers and the wider communities affected by them,” he said.

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