Global commercial insurance rates fell by 1% in Q3 2024.
Asia and the Pacific’s third quarter (Q3 2024) commercial insurance rates fell 4% and 6%, accordingly, reported Marsh.
Worldwide, global commercial insurance rates fell by 1% in Q3 2024, marking the first quarterly decrease since Q3 2017. The decline is attributed to growing competition amongst insurers, particularly in the property sector.
“In the third quarter, for the first time in seven years, we saw a decline in the global composite rate, with three of the four major product lines experiencing a decrease, which is a positive development for our clients,” Pat Donnelly, President, Marsh Specialty and Global Placement, Marsh, said.
“We are watching the markets closely for any impacts from the recent devastating storms during the North American hurricane season, and continue to offer support to our clients and the broader communities affected by them,” Donnelly added.
Regional variations were noted, with rate decreases in the UK, 3% in Canada, and 2% in the India, Middle East, and Africa (IMEA) region.
Rates increased by 3% in both the US and Latin America/Caribbean, while remaining stable in Europe.
Property insurance rates dropped by 2% globally after staying flat in Q2 2024 and rising 3% in Q1 2024.
Declines were observed in the US, UK, Canada, Asia, Pacific, and IMEA, whilst Europe and LAC saw increases.
Insureds with assets in catastrophe-prone regions experienced above-average rate decreases, though this data pre-dates recent hurricanes in the Gulf.
In Asia, property rates fell by 3% as insurers adopted a more flexible approach on deductibles while maintaining focus on natural disaster exposure.
Casualty rates rose 6% globally, driven largely by high jury awards in US courts, though Asia saw a 2% decrease.
In financial and professional lines, rates dropped 7% globally, marking a ninth consecutive quarter of declines, with Asia observing a 10% decrease.
Cyber insurance rates declined 6% globally, with decreases across all regions.
In Asia, rates dropped by 7%, with the market showing resilience despite concerns following the recent CrowdStrike outage.
Cyber insurance continues to be a key growth area in the region, with expanded coverage and competitive pricing.