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Pacific Insurance Market Rates

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the Pacific insurance market.

04/23/2024

Q1 2024

Pacific rates decrease, led by financial and professional lines

Insurance rates in the Pacific region declined 2% in the first quarter of 2024. 

Pacific first quarter 2024

Pacific composite insurance rate change 

Pacific property

Property rates stabilise

Property insurance rates were flat for the second consecutive quarter, following 26 quarters of increases.

  • Insurers were actively seeking new opportunities.
  • Clients with risk improvements or histories with no or limited losses typically experienced better outcomes.
  • Long term agreements (LTAs) were offered to some organisations, generally with reductions in year two.
  • Organisations with histories of significant losses and large natural catastrophe exposures generally saw greater increases, as did those facing certain macro issues, such as those related to environmental, social, and governance (ESG).   

Pacific casualty

Casualty rates decline for fourth consecutive quarter

Casualty insurance rates rose 3%.

  • Insurers deployed new capacity, contributing to improved results and increased options for buyers.
  • Underwriting scrutiny continued, particularly in areas such as contractor injury, US exposures, and per- and polyfluoroalkyl (PFAS) substances. 

Pacific financial and professional lines 

D&O rate decline moderates

Financial and professional lines rates decreased 10%. 

  • Directors and officers (D&O) liability insurance continued to decline.
  • The number of new market entrants slowed.
  • LTAs were offered to some companies.
  • The first class-action lawsuit related to artificial intelligence has been commenced, leading to increased scrutiny on clients' disclosures and use of AI.

Cybersecurity controls remain a key to rates

Cyber insurance rates declined 2%.

  • Greater competition among insurers led to more coverage and retention options.
  • Underwriters focused on supply chain risk, dynamic privacy regulations, and the continued threat of ransomware.
  • Clients showed interest in exploring cyber property damage cover.
  • Underwriters continued to scrutinise risk management and cybersecurity controls, especially regarding the mitigation of ransomware threats.

Regional analysis

City Light Trails

Global Insurance Market Index

Global Insurance Market Index

04/24/2024

The Global Insurance Market Index is our proprietary measure of global commercial insurance premium pricing change at renewal, providing insights on the world's major insurance markets.
Aerial view of the Bay Bridge in San Francisco, CA

Global Insurance Market Index

US insurance rates

04/24/2024

Insurance rates in the first quarter of 2024 in the US increased by 3%, the same as in the prior quarter.
Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

02/05/2024

Insurance rates in the UK were flat in the fourth quarter of 2023.
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Global Insurance Market Index

Latin America and Caribbean insurance rates

Insurance rates in the first quarter of 2024 in the Latin America and Caribbean (LAC) region increased 5%.
Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe increased 3% in the first quarter of 2024.
Shanghai skyline at night

Global Insurance Market Index

Asia insurance rates

Insurance rates in the first quarter of 2024 in Asia declined 2% after being flat for the three prior quarters.
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Canada insurance rates

Insurance rates in Canada declined 2% in the first quarter of 2024.
Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

04/24/2024

Insurance rates in the first quarter of 2024 declined 2% in the IMEA region.

Previous reports

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