What are the world's commercial insurance rates? | Insurance Business America Insurance News What are the world's commercial insurance rates?
Marsh Releases Latest Edition of the Global Insurance Market Index
Insurance News
Terry Gancuanco
Marsh has released the latest edition of its World Insurance Market Index, a proprietary measure of global commercial insurance rate changes at renewal time.
Global commercial insurance premiums rose 2% in the fourth quarter of 2023, after increasing 3% in the third quarter, according to Marsh.
“Premium rates remained relatively stable across most regions in the fourth quarter,” Marsh noted. “As in the third and second quarters, this was primarily due to a continued downward price trend in the financial and professional sectors and a slight rate decline in the cyber market.”
“Moderating rate increases for property risk also contributed to the quarterly performance, while increased competition helped offset the impact of strong demand and ongoing losses.”
“Fourth quarter average rates remained flat in the UK, Canada and Asia Pacific. Rates increased 3% in the US, 4% in Europe, 4% in India, the Middle East and Africa and 8% in Latin America and the Caribbean.”
On average, global property insurance premiums rose 6% in the fourth quarter, non-life premiums increased 3%, financial and professional premiums fell 6% and cyber premiums fell 3%.
“At a time of increasing global economic uncertainty, clients will welcome greater stability in premium rates, particularly for property-related insurance, and increased competition among insurers for well-managed risks,” Pat Donnelly, president of specialty and global placements at Marsh, said in an email.
“As 2024 promises to be a year filled with significant geopolitical and economic challenges, we are working closely with our clients to develop solutions that enable them to become more resilient to global events and take advantage of improving market conditions.”
The Marsh Global Insurance Market Index, which shows 25 consecutive quarters of rate increases, can be accessed here.
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