Broker Marsh said global commercial insurance rates increased by 2% at renewal in the fourth quarter of 2023, marking the 25th straight quarter of rate increases.
“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,” said Pat Donnelly, president, Marsh Specialty and Global Placement. “With 2024 set to be a year of significant geopolitical and economic challenges, we are working closely with clients to develop solutions that will enable them to become more resilient to global events and to take advantage of improving market conditions.”
According to Marsh’s Global Insurance Market Index, 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 & Africa by 4%, and in Latin America and the Caribbean by 8%.
Global property insurance rates increased 6%, with an increase in every region except the Pacific, where rates were flat. Underwriters globally continued to scrutinize property valuations in light of ongoing inflation.
Financial and professional lines and cyber rates decreased 6% and 3%, respectively. Marsh said every region saw a decrease during Q4 in financial and professional lines. In cyber, insurers continued to focus on cybersecurity controls, typically looking for year-over-year improvements, Marsh added.
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