Global Commercial Insurance Rates Flat in Q2, Ending 26-Quarter Increase Streak

Global commercial insurance rates remained flat in the second quarter of 2024, according to the Global Insurance Market Index released by Marsh.  This marks the first time since Q3 2017 that the global composite rate has not increased, ending a 26-quarter streak of rising rates. 

The moderation of rates was largely driven by increasing competition among insurers in the global property market. Rates decreased by an average of 5 percent in Canada and the Pacific and by 3 percent in the United Kingdom and Asia. Meanwhile, rates increased by 1 percent in the United States and Europe and by 4 percent in Latin America, the Caribbean, and the India, Middle East, and Africa (IMEA) regions. 

Key findings from the report include the following.

• Property Insurance. Rates globally were flat, compared to 3 percent and 6 percent increases in Q1 2024 and Q4 2023. Rates either declined or moderated in every region except IMEA. Property insurers and owners are monitoring the Atlantic hurricane season for potential impacts. 
• Casualty Lines. Rates increased by 3 percent globally, consistent with the previous six quarters. Canada and Asia saw decreases, while rates in the UK and IMEA remained flat. Insurers continue to be concerned with large jury awards in US courts. 
• Financial and Professional Lines. Rates decreased for the eighth consecutive quarter, decreasing by 5 percent globally, with decreases in every region. The deceleration was notable in the United States, the United Kingdom, Canada, and Europe, while other regions saw accelerated decreases. 
• Cyber Insurance. Rates decreased by 6 percent globally, repeating the decrease from the prior quarter. All regions recorded decreases, with insurers focusing on improved cybersecurity controls and resilience. 

Pat Donnelly, president of Marsh Specialty and Global Placement, commented, "We have seen the continued moderation of the global composite rate over the past few years, with a stable composite in Q2 2024, which is a positive movement for our clients. As there remains rate increases in some lines, we see significant opportunities to help clients navigate the complexity they're facing today and support their risk financing decisions."