Marsh index shows global insurance rate decrease slowing to 5% in Q3

By Michael Loney Oct 15 (The Insurer) — The Marsh Global Insurance Market Index shows primary commercial insurance rates decreased 5% in the third quarter, a moderation sequentially from a 6% decline in the second quarter of this year, president and CEO John Doyle said. Talking to analysts after Marsh reported a third-quarter results beat, Doyle noted that Marsh’s index skews to large accounts. Providing more details, he said that Q3 rates in the US decreased 1% (−2% in Q2); mid-single-digit Q3 decreases were reported for Canada (−7% in Q2), Europe (−6% in Q2) and Asia (−5% in Q2); high single-digit decreases were reported for the UK (−8% in Q2) and Latin America (−9% in Q2); and the Pacific (−13%) region had double-digit decreases. Global property rates decreased 10% in the third quarter, compared to a 12% drop in Q2. Global financial and professional liability rates were down 3%, the same as in Q2, while cyber decreased 4%, also unchanged. Global casualty rates increased 1%, compared with a 2% increase in Q2. US excess casualty rates were up 13% in Q3, which Doyle said reflected inflationary pressure and loss costs. This compared with a 15% increase in Q2. Workers' compensation d