Global commercial insurance rates increased by 2% in the fourth quarter of 2023 (down from a 3% increase in Q3), which was the 25th consecutive quarter of rate increases, according to the Marsh Global Insurance Market Index, released today.
Rates continued to be relatively consistent across almost all regions in Q4, driven by pricing decreases in financial and professional lines, and cyber. 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.
Commenting on the findings, Pat Donnelly, president, Marsh Specialty and Global Placement, said: “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.”
Key report findings include:
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 and Africa by 4%, and in Latin America and the Caribbean by 8%.
Global property insurance rates were up 6%, on average, in the fourth quarter of 2023, a slight fall from the 7% increase in the previous quarter; casualty insurance rates increased by 3%, the same as the previous four quarters.
For the sixth consecutive quarter, the overall average pricing for financial and professional lines fell. Driven by rate reductions and increased competition for business – particularly in the US, UK and Pacific – average rates decreased by 6% in the fourth quarter, the same as the previous quarter.
Globally, cyber insurance rates decreased by 3%, compared to a 2% decrease in the prior quarter; only the second quarter to record an average decrease since 2018.
And finally, the report found that insurers in most regions remain concerned about the impact of inflation on asset values and claims costs during renewal discussions.
