Insurance prices worldwide increased by 1% in the first quarter of 2024, down from a 2% increase in the fourth quarter of 2023, according to the latest Global Insurance Market Index report published by Marsh, a leading global insurance broker and risk advisor.
In the first quarter of 2024, insurance rates were relatively stable, with slight decreases observed in almost all regions worldwide. This was largely due to the continuation of the downward trend in financial and professional lines, as well as cyber lines, coupled with increasing competition among insurers in the global property insurance market.
In the UK, Canada, India, Asia, the Pacific region, the Middle East, and Africa, insurance rates fell by an average of 2%. Meanwhile, in the United States and Europe, insurance prices increased by 3%, and in Latin America and the Caribbean, they rose by 5%.
Key findings include:
- Property policy prices worldwide increased by an average of 3% in the first quarter of 2024, down from 6% in the fourth quarter of 2023. In the United States, companies operating in areas of increased catastrophic risk, such as the Gulf of Mexico, Atlantic coast, and California, began to report lower rate increases or even decreases, marking a shift from the high increases seen in recent years.
- Liability insurance rates increased by an average of 3%, maintaining the level from the past five quarters.
- This is the seventh consecutive quarter of declining prices in financial and professional lines. Due to further reductions and increased competition for clients—particularly in the United States, the UK, the Pacific region, and Canada—rates fell by an average of 7% in Q1 2024 (compared to a 6% decrease in the previous quarter).
- Cyber policy prices worldwide decreased by 6% (a 3% decrease from Q4 2023). Insurers are increasingly focusing on organizations’ cybersecurity control systems, typically requiring improvements in cyber resilience year-over-year.
“The continued moderate pace of insurance rate growth and increased appetite of insurers, especially for well-managed risks, are welcomed by clients who continue to face economic and geopolitical uncertainties. In the rapidly changing risk landscape, organizations remain under pressure to improve their risk management capabilities and enhance resilience against global upheavals and unforeseen events. Through our close collaboration with clients, we provide the necessary tools to navigate these challenges and benefit from improved market conditions,” commented Pat Donnelly, President of Marsh Specialty and Global Placement at Marsh.
Marcin Zimowski, Director at the Strategic Client Division in Marsh Poland, noted: “The latest report brings reassuring news for those seeking insurance protection, although it’s worth noting that Europe (excluding the UK) remains one of the few regions (alongside the USA and South America) where we have not yet observed a decrease in rates, but only a slowdown in their growth. The Polish market seems to be following the trend. A growing number of renewals, assuming unchanged protection parameters and a good level of damage, ends with rates set at the same level as the previous year, or slightly increased. However, it’s worth considering that the level of inflation in Poland was higher than in many other countries, which translates into higher average costs of property restoration after damage, as well as increased expectations from the injured regarding the amount of benefits, impacting insurers’ costs. The Polish market remains relatively narrow (with the prospect of further reduction in the number of active entities in the insurance sector for big business in the near future), which does not favor increasing competition—although prices are no longer rising as fast as a few quarters ago, we still observe quite high requirements regarding the quality of risk, not very aggressive pursuit of new business on the part of insurers, and a long wait time for an insurance condition proposal.”
