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Many CFOs are focused this year on prioritizing cost management. One cost, insurance premiums, has been on a consistent upward climb for a long time—until now.
Global insurance rates were flat—not down, but not up either, so that’s something!—in the second quarter, according to Marsh’s Global Insurance Market Index. Q2 was the first time since the third quarter of 2017 that the index didn’t show a rate increase. Insurance rates had increased 1% in Q1.
“We have seen the continued moderation of the global composite rate over the past few years, with a stable composite in Q2 2024, which is a positive movement for our clients,” Pat Donnelly, president of Marsh specialty and global placement, said in a statement. “As there remains rate increases in some lines, we see significant opportunities to help clients navigate the complexity they’re facing today and support their risk financing decisions.”
Property insurance rates were flat in Q2, after increasing 3% in the previous quarter and 6% the final three months of 2023, according to the report. The Atlantic hurricane season could drive up rates if there is “substantial storm activity” that could put a damper on insurers’ pocketbooks, Marsh noted in a news release.
Casualty insurance rates increased 3% globally. Rates in financial and professional lines decreased 5% worldwide, marking the eighth straight quarter of decreases. Global cyber insurance rates decreased 6% last quarter, mirroring the 6% decrease in Q1.