Marsh: Global insurance rates continue downward trend
Written by staff reporter
Global insurance rate decreases moderated for the fifth consecutive quarter, according to Marsh’s own measure of global commercial renewal rates.
It says global insurance rate decreases moderated on average for the fifth consecutive quarter, down 2.3% (compared to the previous quarter’s decrease of 3.1%).
Further, the first quarter of 2017 saw decreases moderate globally across property, casualty, and financial and professional lines. It was also the third consecutive quarter in which global casualty rate decreases moderated (down 0.6%), largely driven by the first increase in US casualty renewal rates since the third quarter of 2014.
Global property rates declined on average by 3.6% in the first quarter compared to a decrease of 4.2% in the fourth quarter of 2016, while financial and professional lines declined by 2.6%, compared to 3.0% in the previous quarter.
Commenting on the findings, Dean Klisura, Global Industry Specialties and Placement leader at Marsh, said: “The first quarter of 2017 was the sixteenth consecutive quarter in which average renewal rates declined. This trend continues to be driven by a marketplace with significant capacity and a competitive underwriting environment."