In this latest report from Marsh they have identified that global insurance rates have decreased on average in the first quarter of 2015 compared to the first quarter of 2014. The decrease, driven largely by an oversupply of capital, marks the eighth consecutive quarter of rate declines.
Decreases in insurance rates were seen across regions and in most major lines of business, with cyber insurance a notable exception.
According to the report:
- Asia-Pacific experienced the largest composite rate decrease, followed by Continental Europe, the UK, Latin America, and the US.
- Cyber insurance in the US was one of the few areas where average rates increased. Rate levels have been generally increasing, even for companies without meaningful cyber losses to date.
- The Marsh Global Insurance Index stood at 0.967 in the first quarter of 2015, down from 0.977 in the previous quarter.
The report also examines the components of the insurance pricing environment: capital committed to the market, insurer profitability, and insurer pricing methodologies