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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.

New Zealand Insurance Market

It is important to note that reported rate changes are averages and that the data used to estimate the changes cover a wide range of clients in terms of size, industry, location, claims history, and other parameters. Many clients received rate changes that deviated from the average, some higher and some lower.

  • In New Zealand, the rise in property insurance rates moderated, although some clients still experienced double-digit increases. Underwriters remained focused on CAT-exposed and flood-impacted locations.  

  • In New Zealand, declines in D&O rates typically were not as steep as in Australia. 

This document and any recommendations, analysis, or advice provided by Marsh (collectively, the ‘Marsh Analysis’) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 24/031.