Global commercial insurance rates fell 2% in the fourth quarter of 2024 following a 1% decline in Q3 2024 – marking the second consecutive quarterly decrease following seven years of rising rates.

According to the Global Insurance Market Index, released today by Marsh, the findings continue the moderating rate trend first seen in Q1 2021, which the broker believes is being driven by intensified competition in commercial property insurance, a moderation of casualty rate increases, stabilising pricing in financial lines, and accelerated rate reductions for cyber risks.

Commenting on the findings, John Donnelly, global head of placement, Marsh, said: “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.”

Property rates declined 3% globally, following a 2% decline in Q3 2024. The Pacific region experienced the largest decrease, at 8%. The US and UK declined by 4%, while low single-digit decreases were recorded for Canada, Latam and the Caribbean, and Asia.

The global property market remains sensitive to loss events, particularly the ongoing Los Angeles wildfires, which will likely impact aggregate catastrophe losses in 2025. Property rates were flat in Europe, while India, the Middle East and Africa experienced a 3% increase.

Financial and professional lines rates decreased by 6% globally – the tenth consecutive quarter of declines – with rate decreases recorded in every region as a result of increased capacity. Cyber rates decreased 7%, following a 6% decline in the previous quarter, with decreases in every region, as capacity increased, and cyber security improved.

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