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Digital report

Pacific Insurance Market Pricing

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

Q4 2023 

Pacific pricing:  Financial and professional rates, led by D&O, continue to decrease

Insurance rates in the Pacific region were flat in the fourth quarter of 2023. 

Pacific fourth quarter 2023

Pacific composite insurance rate change 

Pacific property

Pacific property rates show no increase for first time in 26 quarters

Property insurance rates were flat, marking the first time in 26 quarters that average property rates did not increase. 

  • Loss-impacted and catastrophe (CAT)-exposed insureds typically experienced rate increases.
  • Insurer competition and capacity increased.

Pacific casualty

Casualty rates pace of increases continues to decline

Casualty insurance rates rose 4%.

  • Insurers deployed new capacity and restructured programs, contributing to improved results and increased options for buyers.
  • Underwriting scrutiny continued, particularly in areas such as contractor injury, US exposures, polyfluoroalkyl substances (PFAs), and environmental, social, and governance (ESG). 

Pacific financial and professional lines 

D&O rates continue to decline  

Financial and professional lines rates decreased 5%.  

  • Directors and officers (D&O) liability rates decreased, with many clients experiencing declines of 15% or more.
  • Competition remained strong for primary and excess layers from both new insurers and legacy carriers.
  • Insurers are monitoring claims trends related to the use of generative AI.

Cyber insurance rates continue to moderate

Cyber insurance rates were flat.

  • Cyber rates moderated significantly, with rollover of rates at renewal becoming the norm.
  • Increased competition from insurers typically opened up additional options for clients.
  • Insurers’ areas of focus included catastrophic risk, dynamic privacy regulations, and ransomware.
  • Underwriters typically sought detailed risk information, particularly regarding the ability of clients to mitigate ransomware threats.