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.
What do you think about this story? Share your thoughts in the comments below.
The continued impact of catastrophic events is a major factor driving up costs, along with the increasing cost of capital, financial market volatility and inflation. This is an expense carriers need to pass along to customers.
Global Insurance Prices Continue to Stabilize in Q3 as US Cyber Premiums Drop: Marsh. Global commercial insurance prices increased 3% in the third quarter of 2023, the same as the prior quarter, according to the Global Insurance Market Index released by the insurance broker Marsh, a business of Marsh McLennan.
Personal lines set to drive growth again in 2024; commercial lines growth to be led by property. We forecast total direct premiums written (DPW) growth of 7.0% in 2024 – an upward revision from 5.5%, driven by momentum in personal auto – and 4.5% in 2025 after nearly 10% growth in 2022 and 2023.
And when insurance companies have to pay out, they need to take more in. That's just how insurance works. If they ran out of money, they wouldn't be able to pay future claims. Over time, this leads to higher premiums for everyone (not just the ones who filed a claim).
We are currently in the midst of an increasing rate environment. Rates quoted at application may increase dramatically during the loan application progress, if not locked. It is very important to understand your lender's procedure upfront to avoid potential confusion.
Introduction: My name is Pres. Lawanda Wiegand, I am a inquisitive, helpful, glamorous, cheerful, open, clever, innocent person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
