Global Commercial Insurance Rates Decline for Second Quarter

Global commercial insurance rates fell 2 percent in the fourth quarter of 2024, following a 1 percent decline in the previous quarter, according to the Global Insurance Market Index released by Marsh. This marks the second consecutive quarterly decrease after 7 years of rising rates. 

The continued moderation in pricing trends is driven by intensified competition in commercial property insurance, slowing increases in casualty rates, stabilizing financial lines pricing, and accelerating declines in cyber insurance rates, per Marsh. 

By region, the Pacific saw the largest decrease at 8 percent, followed by the United Kingdom at 5 percent, Asia at 3 percent, and Europe and Canada at 2 percent each. Rates in the United States remained flat after a 3 percent increase in the third quarter. In contrast, Latin America and the Caribbean, as well as India, the Middle East, and Africa, recorded 1 percent increases, Marsh reported. 

Property insurance rates fell 3 percent globally, with the Pacific experiencing the sharpest decline at 8 percent. Rates fell by 4 percent in the United States and the United Kingdom, while Canada, Latin America, and Asia saw smaller decreases. Rates remained flat in Europe and rose 3 percent in India, the Middle East, and Africa. The global property market remains sensitive to loss events, with the ongoing Los Angeles wildfires expected to impact 2025 catastrophe losses, according to Marsh. 

Casualty insurance rates increased 4 percent globally, down from a 6 percent rise in the previous quarter. US casualty rates rose 7 percent, outpacing other regions. Latin America recorded a 5 percent increase, while other regions saw changes ranging from a 2 percent decrease to a 1 percent increase, Marsh said. 

Financial and professional lines rates declined 6 percent globally, marking the 10th consecutive quarter of decreases. Every region experienced declines due to strong competition and available market capacity. 

Cyber insurance rates fell 7 percent globally after a 6 percent decrease in the previous quarter. Increased competition from both established and new insurers, along with improved cybersecurity measures among companies, contributed to the decline, according to Marsh. 

"The softening of rates across property, financial lines, and cyber are a positive development for clients, while the challenges in other areas of the market, particularly in US casualty, are acute," John Donnelly, global head of placement at Marsh, said. "We are committed to helping clients manage costs, protect their balance sheets, and successfully navigate the evolving market conditions."