Business Relief as Insurance Rates Decline Worldwide

0

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Across the globe, varying trends emerged. United Kingdom-based rates decreased by 5%, while rates across Asia saw a 3% decline. Both Europe and Canada experienced a modest dip of 2%. However, the scenario was different across the Americas; the United States saw its rates remain stable, and Latin America encountered a slight 1% increase.

The Global Insurance Market Index highlights this as the second consecutive quarter where commercial rates have collectively declined, noting a 2% drop for the October to December timeframe.

John Donnelly, Marsh's global head of placement, emphasised the importance of these rate changes, saying, “The softening of rates across property, financial lines, and cyber is a positive development for clients, while the challenges in other areas of the market, particularly in US casualty, are acute.” This viewpoint underscores that while the general trend is positive for clients, specific market segments may still face hurdles.

Focusing on the Pacific market, which remains heavily influenced by Australian renewals, the 8% decrease facilitates a client-friendly environment, continuing what is now a four-quarter streak of rate decreases for commercial clients.

Breaking down by insurance type in the Pacific, property rates fell by 8%, casualty rates declined by 2%, and financial and professional lines saw a significant 12% decrease. Marsh signifies that this trend is partially due to insurers prioritising premium growth, leading to intensified competition. Nonetheless, accounts that were impacted by claims still faced careful evaluations, with insurers hesitant to implement substantial price reductions.

The financial and professional lines saw heightened competition, especially in directors' and officers' liability risks. Cyber rates, interestingly, only saw increases if there were major shifts in the underlying risk profiles. This indicates a continued competitive atmosphere in specific lines despite overarching declines.

The original data for this report was sourced from Marsh's Global Insurance Market Index, showcasing a dynamic period for global insurance, with implications for businesses across various regions and sectors.

Published:Tuesday, 11th Feb 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Clear

Envest Group Unveils TLI Underwriting for Heavy Motor Fleets

31 Dec 2025: Paige Estritori

Envest Group, a prominent player in Australia's insurance sector, has announced the launch of TLI Underwriting, a new agency dedicated to providing specialised insurance solutions for heavy motor fleet operators. This strategic move aims to address the unique challenges faced by larger transport businesses in Australia. - read more

IAG Boosts Profit Forecast Post-RACQ Insurance Acquisition

31 Dec 2025: Paige Estritori

Insurance Australia Group (IAG) has announced an upward revision of its annual profit forecast, attributing the increase to the recent acquisition of RACQ Insurance. The company now anticipates a reported insurance profit ranging between $1.55 billion and $1.75 billion for the financial year, marking a $100 million enhancement from the previous estimate. - read more

NTI Report Highlights Human Error as Leading Cause of Major Truck Crashes

31 Dec 2025: Paige Estritori

The National Truck Accident Research Centre (NTARC), supported by National Transport Insurance (NTI), has released its latest Major Incident Investigation Report, shedding light on the predominant causes of significant truck crashes across Australia. The findings underscore the critical need for targeted interventions to enhance road safety within the transport industry. - read more

Hutch Underwriting Launches Comprehensive Professional Indemnity Insurance for Tradies

31 Dec 2025: Paige Estritori

Hutch Underwriting has unveiled a revamped professional indemnity (PI) insurance policy tailored specifically for tradespeople, including electricians, carpenters, and painters. This innovative coverage consolidates protection against advice, design, and incidental cyber exposures into a single, streamlined solution. - read more

Australian Builders Reassess Insurance Strategies Amid Escalating Construction Costs

31 Dec 2025: Paige Estritori

The Australian construction industry is currently grappling with significant cost increases, driven by persistent supply chain disruptions and a shortage of skilled labour. These challenges are compelling builders to reevaluate their insurance strategies to effectively manage heightened financial risks. - read more

Click for more Insurance News