Global insurance pricing falls for second straight quarter

The cost of eggs may be skyrocketing, but commercial insurance pricing is mostly down—so at least we’ve got that going for us, which is nice.

Global rates fell 2% in the final months of 2024, according to a report from insurance broker Marsh. Q4 marked the second consecutive quarter of commercial insurance rate declines following seven years of increases. Rates in the US specifically were flat last quarter, following a 3% increase in Q3.

Not all the news was good for the cost-minded CFO monitoring insurance rate changes, however.

Casualty insurance was the one major line of coverage that didn’t decrease last quarter; it ticked up 4% globally. US casualty insurance pricing increased 7% in Q4, outpacing rate increases in other regions. This was “driven largely by excess/umbrella rates,” according to the report.

Commercial property insurance rates were down 3%, rates in financial and professional lines were down 6%, and cyber insurance rates fell 7%.

In the US, property insurance rates fell 4%, carrying on the Q3 momentum when rates declined by 1%. US financial and professional lines prices were down 3% in Q4, continuing a downward trend reaching back to Q3 2022. US cyber insurance rates decreased 5%.

“The softening of rates across property, financial lines and cyber are a positive development for clients, while the challenges in other areas of the market, particularly in US casualty, are acute,” John Donnelly, Marsh’s global head of placement, said in a news release.