Global Insurance Market Quarterly Briefing – July 2014
Strong capacity led to the fifth quarter of falling insurance rates as the Marsh Global Index dropped below second-quarter 2012 levels.
In the United States, broader continued price corrections have been seen over the last several quarters, in certain niche markets and core products (casualty).
Overall pricing in global insurance markets in the second quarter of 2014 declined for the fifth consecutive quarter, as measured by the Marsh Risk Management Global Insurance Index. The decline was driven by continued strong capacity – particularly for property lines – and by an absence of significant losses during the second quarter of 2014. The index fell to 99.5, dropping for the first time below its inception value of 100, established in the second quarter of 2012.
According to the report:
- Nearly all regions saw rates generally decline, with only the United States and United Kingdom indices remaining above 100.
- Global property insurance rates declined by an average of 4.6%.
- Casualty insurance rates fell by 0.6% globally.
- Financial and professional lines fell by 2.3%.
In addition to details on trends in insurance rates in the major lines of coverage for all the major regions globally, the briefing covers the rise in inquiries for drone coverage options and the evolution of cyber insurance markets. Please log in to access the briefing.