Global commercial insurance rates climbed one per cent in the first quarter of 2024, according to the Global Insurance Market Index released today by Marsh. The report also notes that rates continued to be relatively consistent, with most regions experiencing small decreases in the same period. Experts consider this to be largely driven by the decreases in financial and professional, and cyber lines, as well as the increasing competition among insurers in the global property market. On average, rates declined in the UK, Asia Pacific, Canada, India, the Middle East and Africa by two per cent; whilst the figures increased in the US and Europe by three per cent, and in Latin America and the Caribbean by five per cent. By sector, global property and casualty insurance rates were up three per cent in the period, whereas rates in financial and professional lines decreased by seven per cent, and fell by six per cent in cyber insurance. According to Marsh's report, insurers are increasingly focusing on the effectiveness of organisations' cybersecurity controls and typically seek year-over-year improvements in cyber resilience. Pat Donnelly, president at Marsh Specialty and Global Placement, says: “A continued moderation in insurance rates and an increased appetite among insurers, particularly for well-managed risks, will be welcomed by clients that continue to face major global economic and geopolitical uncertainty. “In a rapidly changing risk landscape, organisations will be under pressure to improve their risk management capabilities and make themselves more resilient to global shocks.”
