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US Insurance Market Rates

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

Q2 2024

US rate increases continue to moderate

Insurance rates in the second quarter of 2024 in the US increased 1%.

US second quarter 2024

US composite insurance rate change 

US property

US property insurance rate increases continue to slow

Property insurance rates rose 2%, continuing a decline in the pace of increases.

  • Improvements in rate and limit offerings were products of insurers’ strong underwriting and financial results, as well as stability in the reinsurance market, which led to increased available capacity.
  • Additional limits were available in most industries and layers within shared and layered program structures.
  • Insureds with assets concentrated in natural catastrophe (CAT) zones — such as the Gulf of Mexico, Atlantic coast, and California — that in recent years experienced greater than average rate increases are now generally seeing above average decreases.
  • Organizations continued to explore assuming more risk, including increasing retentions, assuming capacity within their insurance programs, or adopting alternative risk transfer measures such as captives, parametric, or structured solutions.
  • While the US property insurance market showed signs of improvement, a significant event could slow the current downward rate trend.

US casualty

Casualty rates rise as jury verdicts and repair costs impact auto liability

Casualty insurance rates increased 4%; excluding workers’ compensation, the increase was 7%.

  • Workers’ compensation remained the area of most interest to casualty insurers, although there was concern about increasing reserves and rising medical costs.
  • Auto liability continued to be affected by large jury verdicts and increased physical damage costs, which affect repair expenses.
    • General liability rates remained consistent, with some small increases. Areas of insurer concern included per- and polyfluoroalkyl substances (PFAS), biometrics, and mass shootings.
    • Industry classes posing challenges included habitational real estate, hospitality, higher education, and public entities.
  • Umbrella/excess liability risk-adjusted rates increased 10%, compared to 11% in the first quarter.
    • Insurers generally monitored and reevaluated capacity on individual risks due to the US litigation environment.
    • Reinsurers urged insurers to recalibrate portfolios, reduce volatility, and moderate exposure to high-hazard classes of business.

US financial and professional lines

D&O rates continue to decline

Financial and professional lines rates decreased 3%.

  • Directors and officers (D&O) liability rates continued to decline, though the pace of decreases moderated to 5% compared to 8% in the prior quarter.
    • Many insurers sought to move off of high excess D&O layers in favor of side A or lower layers, such as primary and first excess.
    • Competition for new business from new market entrants and legacy insurers generally persisted.
    • Insurers typically sought to expand D&O participation with insureds by managing their overall relationships across product lines.
  • Fiduciary insurance rates were flat.
    • Insurers continued to monitor and react to lawsuits that seek to apply the liability theories used in Employee Retirement Income Security Act (ERISA) excessive fee litigation to lawsuits involving health plans/pharmacy benefits managers (PBMs).
    • Litigation related to pension risk transfer has increased underwriting focus on defined benefit plans.
  • Both errors and omissions (E&O) and financial institution (FI) insurance rates increased slightly.

Cyber rates decrease for fifth consecutive quarter

Cyber insurance rates decreased 5%.

  • Capacity was available for both primary and excess programs.
  • Some insureds with strong cybersecurity measures used premium savings to purchase greater limits and reduce self-insured retentions (SIRs).
  • Marsh 2023 claims data showed that nearly one-fifth of clients purchasing cyber insurance reported a claim. It generally takes 18 to 36 months to close a claim, meaning many 2023 claims are still developing.
  • (Re)insurers remain concerned with and are trying to better quantify single points of failure and third-party cyber risks.