Global commercial insurance rates fall for fifth straight quarter: Marsh report
Intense competition among insurers to attract and retain customers is driving down prices
[NEW YORK] Commercial insurance prices fell 4 per cent worldwide on average in the third quarter, dragged by competition among insurers and favourable reinsurance pricing, a report by insurance broker Marsh McLennan said on Thursday (Oct 23).
The easing follows years of steep price hikes that peaked in 2021, offering relief to businesses and households seeking protection against financial risks, property damage and natural disasters.
Intense competition among insurers to attract and retain customers is driving down prices and giving buyers more options and flexibility in their coverage.
The third quarter marks the fifth straight quarterly decline in Marsh’s Global Insurance Market Index.
Rates for property, cyber, and financial and professional insurance declined across every region.
Property insurance rates fell the most, declining 8 per cent globally.
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Cyber coverage fell 6 per cent and financial and professional lines slipped 5 per cent, according to the report.
Casualty rates were the only segment to buck the trend, rising 3 per cent globally, led by an 8 per cent increase in the US amid a rise in costly jury verdicts.
“With the exception of US casualty, clients are benefiting not only from lower rates but also from opportunities to negotiate improved terms and broader coverage,” said John Donnelly, Marsh’s president of global placement.
The insurance rates are expected to keep falling in the coming quarters, unless large catastrophe losses or a sharp rise in claims disrupt the trend. REUTERS
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