What is happening to global commercial insurance rates? | Insurance business America
Marsh publishes the latest edition of the Global Insurance Market Index
Insurance News
By Terry Gangcuangco
Marsh has released the latest edition of its Global Insurance Market Index, the brokerage giant’s proprietary measure of global commercial insurance rate changes at renewal.
According to Marsh, global commercial insurance rates rose 2% in the fourth quarter of 2023. In the third quarter, the change was an increase of 3%.
“Interest rates continued to remain relatively stable in almost all regions in the fourth quarter,” Marsh noted. “As in the third and second quarters, this was largely due to a continuation of the price reduction trend in the financial and professional lines and a slight decline in rates in the cyber insurance market.
“Moderate property risk interest rate increases also contributed to the quarter’s results, with increased competition offsetting the impact of strong demand and ongoing losses.
“On average, fourth quarter rates were flat in the UK, Canada, Asia and the Pacific. In the USA, interest rates rose by 3%; in Europe by 4%; in India, the Middle East and Africa by 4%; and in Latin America and the Caribbean by 8%.”
On average, global property insurance rates rose 6% in the fourth quarter; Accident insurance rates increased by 3%; Interest rates in the financial and professional sectors fell by 6%; and cyber insurance premiums fell 3%.
“At a time of great global economic uncertainty, customers will welcome increased stability in insurance rates – particularly for real estate risks – and increased competition among insurers for well-managed risks,” Pat Donnelly, president of specialty and global placement at Marsh, said in an email -Notice.
“As 2024 will be a year of significant geopolitical and economic challenges, we are working closely with customers to develop solutions that enable them to become more resilient to global events and benefit from improving market conditions.”
The Marsh Global Insurance Market Index, which shows the 25th consecutive quarter of rate increases, can be accessed here.
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2024-02-06 06:40:00
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