Global Insurance Rate Decreases Moderate for Second Quarter in a Row
Global insurance renewal rates declined for the 13th consecutive quarter in Q2 2016, according to Marsh’s Global Insurance Market Index. Despite the continuing decline, Q2 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 at 3.8%).
- Global insured catastrophe losses increased in the first half of 2016 to USD27 billion (compared to USD19 billion in the first half of 2015), which could potentially cause some insurers to begin reconsidering rates if the trend continues.
- The UK’s recent decision to leave the EU has yet to impact the market, but will continue to be monitored.
- US cyber insurance renewal rate increases moderated in Q2 2016 to 6.9% on average, compared to last quarter’s average increase of 12%.
- The US was the only geography worldwide to experience an increased decline in renewal rates, particularly affected by weakening rates in D&O 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.
Access the complete interactive briefing.