Marsh reports 4% global insurance rate decline
Commercial insurance prices fell 4 percent worldwide from July through September after carriers competed for customers and reinsurance costs dropped. Marsh reported the fifth straight quarterly decline following seven years of rising premiums. Property coverage decreased 8 percent globally, while cyber rates slid 6 percent and financial lines dropped 5 percent across all markets.
American casualty insurance climbed 8 percent because juries award massive verdicts that increase claim costs for carriers. The Pacific region recorded an 11 percent composite rate reduction as the steepest regional change. John Donnelly leads global placement at Marsh and said buyers with strong safety records negotiated better contract terms and broader protection.
Hurricane activity remained quiet through the Atlantic season that ends on Saturday, Nov. 30. Clients explored captive insurance companies and other risk transfer options as abundant capacity gave them leverage with traditional carriers. Europe saw cyber rates fall 12 percent while Latin America and the Caribbean recorded similar declines in multiple coverage categories.
