Global commercial insurance rates held steady in Q2 2024, breaking a seven-year trend of consistent price increases, according to Marsh. This is the first time since Q3 2017 that global composite rates have not risen.
The stabilization in rates is largely due to increased competition among insurers in the global property market. Regionally, rates fell by 5% in Canada and the Pacific, and by 3% in the UK and Asia. However, rates increased by 1% in the US and Europe, and by 4% in Latin America and the Caribbean, as well as in the India, Middle East, and Africa (IMEA) regions.
In property insurance, rates remained flat globally, contrasting with the 3% and 6% increases seen in Q1 2024 and Q4 2023. In the US, property insurance rates rose by 2%, down from the previous quarter’s 8% increase.
Casualty lines saw a global rate increase of 3%, the same as in the previous six quarters. While Canada and Asia experienced declines, rates remained unchanged in the UK and IMEA. In the US, casualty rates rose by 4%, with a 7% increase excluding workers’ compensation.
Financial and professional lines (FinPro) rates fell globally by 5% for the eighth consecutive quarter, though the decrease slowed in the US, UK, Canada, and Europe. In the US, FinPro rates dropped by 3%, less than the previous quarters’ declines.
Cyber insurance rates decreased by 6% globally, consistent with the prior quarter. In the US, cyber rates dropped by 5%, marking five straight quarters of decline.
Marsh, a subsidiary of Marsh McLennan, provided the data in this report.
