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US Insurance Market Pricing

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

05/02/2024

Q4 2023 

US pricing: Cyber and financial and professional rates continue to decrease

Insurance rates in the fourth quarter of 2023 in the US increased by 3%. 

US fourth quarter 2023

US composite insurance rate change 

US property

US property insurance rates continue to increase

Property insurance rates increased by 11%; it was the twenty-fifth consecutive quarter in which rates rose. 

  • Rate increases were driven by rising reinsurance and capital costs coupled with three years of strong demand, limited new capacity, and loss activity.
  • Risks with limited natural catastrophe exposure and stable incumbent capacity typically experienced better results than did risks with losses and/or concentrations of assets in CAT zones, including the Gulf of Mexico, the Atlantic coast, and California.
  • Underwriters scrutinized CAT deductibles, together with limitations of cover for non-physical damage, cyber, and communicable disease.
  • Clients generally retained more risk through increased deductibles, or through alternative risk transfer including captives, parametric, or structured solutions.

US casualty

Casualty market remains competitive

Casualty insurance rates increased 3%; excluding workers’ compensation, the increase was 5%.  

  • Casualty markets remained competitive, particularly for workers’ compensation.
  • Auto liability losses continued, with jury awards escalating.
  • Excess liability rates increased 7%, compared to 4% in the prior quarter; insurers focused on large exposures.

US financial and professional lines

D&O rates continue to decline

Financial and professional lines rates decreased 6%. 

  • Directors and officers (D&O) liability insurance for publicly traded companies declined 8%; insurer competition remained strong.
    • The size of rate decline eased, especially for programs that had received large decreases previously.
    • Many insurers continue to evaluate their placement in excess towers, with some seeking to move out of higher layers.
  • Fiduciary rates increased 2% as Employee Retirement Security Act (ERISA) 401k plan excessive fee litigation continued to drive losses.
    • New insurers  offered lower retentions, on some programs. 
  • Errors and omissions (E&O) rates were flat. 
  • Financial institutions (FIs) rates decreased 5%.

Cyber rates decline; ransomware attacks increase

Cyber insurance rates decreased 4% in the quarter. 

  • Ransomware attacks increased in frequency, sophistication, and severity; evolving privacy regulations also led to increased claims.
  • Capacity was available, especially for excess programs; managing general agents (MGAs) continued to bring new capacity into the market. 
  • Catastrophic cyber risk is a significant concern for insurers and insureds; understanding and quantifying exposure to war and aggregated cyber incidents, together with the supply chain risks associated with each, is challenging, but essential.

Regional analysis

City Light Trails

Global Insurance Market Index

Global pricing

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.
Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK pricing

04/24/2024

Insurance rates in the UK declined 2% in the first quarter of 2024.
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Global Insurance Market Index

Latin America and Caribbean pricing

04/24/2024

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 pricing

Insurance rates in Europe increased 3% in the first quarter of 2024.
Beautiful aerial view of the Sydney Opera house by the bay in Australia. Panoramic view.

Global Insurance Market Index

Pacific pricing

Insurance rates in the Pacific region declined 2% in the first quarter of 2024.
Shanghai skyline at night

Global Insurance Market Index

Asia pricing

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 pricing

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

IMEA pricing

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