Global Insurance Rates Decline for 14th Consecutive Quarter

Global Insurance Market Index – Q3 2016

Marsh today released its renamed Global Insurance Market Index for the third quarter of 2016. Previously known as the Global Insurance Market Quarterly Briefing, highlights of this quarter’s report include:

• Global insurance rate decreases have moderated on average for the third consecutive quarter to -3.2% (compared to the previous quarter’s -3.6%)
• The rate of global property declines have moderated on average for the third quarter in a row to -3.9% (compared to the previous quarter’s -4.5%)
• US cyber insurance rate increases moderated in Q3 2016 to an average increase of 4.9% (compared to last quarter’s average increase of 6.9%)
• Insurance renewal rates worldwide remained competitive, however Latin America casualty returned to a positive renewal rate of 0.9% (compared to the previous quarter’s -0.8%) due to increases in motor/auto renewals in Colombia and Mexico on average

Commenting on the findings, Dean Klisura, Global Industry Specialties and Placement Leader at Marsh, said: “While global insurance rates declined for the fourteenth consecutive quarter, the third quarter of 2016 is the third consecutive one that this rate of decline has moderated. This follows an above average level of catastrophe losses in the first half of 2016.”

“United States cyber insurance rate increases moderated to an average of 4.9% in the third quarter of 2016, compared to the previous quarter’s average increase of 6.9%. Despite this, the limits of liability purchased for cyber coverage increased from USD 12 million in the first quarter of 2016 to USD 22 million in the third quarter of 2016.”