Commercial Insurance Rates Decline for 18th Consecutive Quarter
Global Insurance Market Index – Q3 2017
Global insurance renewal rates fell for the 18th consecutive quarter in the third quarter of 2017, according to Marsh's just-released Global Insurance Market Index – Q3 2017, a proprietary measure of global commercial renewal rates, representing the world's major insurance markets and comprising 90% of Marsh premium. Despite the continuing decline, Q3 marks the seventh quarter in a row the rate of decline has moderated on average.
Highlights of this quarter's report include:
- Average global insurance rates decreased for the 18th consecutive quarter, although the rate of decline slowed in the third quarter (down 1.6%) as compared to the prior quarter (down 2.2%).
- Rate decreases slowed globally in the third quarter of 2017 across property and financial and professional lines. Global property rates declined, on average, by 1.7% in the third quarter compared to a decrease of 2.8% in the prior quarter. Financial and professional lines declined, on average, by 1.4%, compared to a 2.1% decrease in the previous quarter. Casualty rates remained unchanged from the second quarter (down 1.7%).
- Rate movements varied by region. A higher rate of average decrease was observed in the United States, Continental Europe, and Latin America in the third quarter as compared to the prior quarter. Average rates decreased in the United Kingdom and Asia in the third quarter, but at less pronounced levels than observed in the prior quarter. Rates increased in Australia for the third consecutive quarter.