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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.

23/07/2024

Q2 2024

Pacific rates decline, led by property and financial and professional lines

Insurance rates in the Pacific region declined 5% in the second quarter of 2024.

Pacific second quarter 2024

Pacific composite insurance rate change 

Pacific property

Property rates decline for first time in over 7 years

Property insurance rates declined 4%, the first reduction since the fourth quarter of 2016.

  • International and wholesale markets drove competition.
  • Long-term agreements (LTAs) were being offered to some clients; some included reductions in year two.
  • Small-to-medium sized property clients generally attracted less competition, with rates ranging from no change to 5% increase, on average.
  • Claims-impacted and catastrophe (CAT)-exposed accounts typically continued to experience rate increases.

Pacific casualty

Casualty rates nearly flat

Casualty insurance rates rose 1%.

  • Capacity and competition increased from new and existing markets.
  • Underwriting scrutiny continued, particularly in areas such as contractor injury, US exposures, per- and polyfluoroalkyl substances (PFAS), and environmental, social, and governance (ESG).
  • Insurers continued to monitor potential claims inflation from litigation trends, including worker/contractor injury claims in Australia that affected back years, particularly for insurers on mining and construction risks.

Pacific financial and professional lines 

Financial and professional lines rates decline

Financial and professional lines rates decreased 12%. 

  • New market entrants contributed to an increase in capacity and competition.
  • Rates for directors and officers (D&O) liability declined in the 15% to 20% range, on average.
  • Financial and professional lines rates decreased, but not uniformly across the various product classes.
  • Long-term agreements (LTAs) were offered to some clients.

Cybersecurity controls remain a key to rates

Cyber insurance rates declined 5%.

  • Improved competition from insurers generally led to more coverage and retention options for clients, including increased limits, decreased retentions, and improved pricing for maintaining a similar policy structure.
  • Insurers focus areas included supply chain risk, dynamic privacy regulations, and ransomware.
  • Cyber physical damage cover was an area of increased interest for clients.
  • Cyber limit quantification is increasingly seen as valuable in understanding an organization's cyber risk exposures.

Regional analysis

City Light Trails

Global Insurance Market Index

Global Insurance Market Index

07/24/2024

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

07/24/2024

Insurance rates in the second quarter of 2024 in the US increased 1%.
Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

07/24/2024

Insurance rates in the UK declined 3% in the second quarter of 2024.
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Global Insurance Market Index

Latin America and Caribbean insurance rates

Insurance rates in the second quarter of 2024 in the LAC region increased 4%.
Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe increased 1% in the second quarter of 2024.
Shanghai skyline at night

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 3% in the second quarter of 2024.
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Canada insurance rates

Insurance rates in Canada declined 5% in the second quarter of 2024.
Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

07/24/2024

Insurance rates in the second quarter of 2024 increased 4%.

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