Global Insurance Rate Decreases Moderate for Second Quarter in a Row
Global Insurance Market Index – Q2 2016
Global insurance renewal rates declined for the thirteenth consecutive quarter in the second quarter of 2016, according to Marsh’s Global Insurance Market Index. Despite the continuing decline, the second quarter of 2016 marks the second quarter in a row that the rate of decline has moderated on average.
Among the key findings from the briefing:
- Global insurance rate decreases have moderated on average for the second quarter in a row to -3.6% (compared to the previous quarter’s -3.8%).
- Global insured catastrophe losses increased in the first half of 2016 to USD 27 billion (compared to USD 19 billion in the first half of 2015), which could potentially cause some insurers to begin reconsidering rates if the trend continues.
- The Uunited Kingdom’s recent decision to leave the European Union has yet to impact the market, but will continue to be monitored.
- The cyber insurance renewal rate in the United Stated increases moderated in Q2 2016 to 6.9% on average, compared to last quarter’s average increase of 12%.
- The United States was the only geography worldwide to experience an increased decline in renewal rates, particularly affected by weakening rates in directors’ and officers’ liability insurance for public companies.
About the index
The Marsh Global Insurance Market Index is a proprietary benchmark of global commercial insurance renewal rates representing the world’s major insurance markets and comprising 90% of Marsh premium. The index captures a rolling four-quarter view of rate movement, providing a quarter-to-quarter look at changes in the marketplace.