Marsh’s Global Insurance Market Index for the third quarter of 2017 has highlighted:
Average global insurance rates decreased for the 18th consecutive quarter, although the rate of decline slowed in the third quarter (down 1.6%) as compared to the prior quarter (down 2.2%).
Rate decreases slowed globally in the third quarter of 2017 across property and financial and professional lines. Global property rates declined, on average, by 1.7% in the third quarter compared to a decrease of 2.8% in the prior quarter. Financial and professional lines declined, on average, by 1.4%, compared to a 2.1% decrease in the previous quarter. Casualty rates remained unchanged from the second quarter (down 1.7%).
Rate movements varied by region. A higher rate of average decrease was observed in the US, Continental Europe, and Latin America in the third quarter as compared to the prior quarter. Average rates decreased in the UK and Asia in the third quarter, but at less pronounced levels than observed in the prior quarter. Rates increased in Australia for the third consecutive quarter.
Commenting on the findings, Dean Klisura, President, Global Placement and Specialties at Marsh, said: “The third quarter of 2017 was the 18th consecutive quarter in which average rates declined globally, largely due to capacity in the marketplace and competitive underwriting. It is worth noting that property damage and business interruption losses from the recent natural disasters in the US and elsewhere had little to no impact on average rates in the quarter as they occurred late in the reporting period. Early indications are showing evidence of rate increases for US catastrophe-exposed property risks.”