Global insurance renewal rates fell for the 17th consecutive quarter in the second quarter of 2017, according to Marsh’s Q2 2017 Global Insurance Market Index.
Despite the continuing decline, Q2 marks the sixth quarter in a row the rate of decline has moderated on average, down 2.2 percent, compared to the previous quarter’s decrease of 2.3 percent.
Highlights of Marsh’s Q2 report include:
- Rate decreases moderate globally in the second quarter of 2017 across property and financial and professional lines. Global property rates declined on average by 2.8 percent in the second quarter compared to a decrease of 3.6 percent in the first quarter, while financial and professional lines declined by 2.1 percent, compared to 2.6 percent in the previous quarter.
- The decline in global casualty business was slightly higher (1.7 percent) than the first quarter (0.6 percent), largely driven by stronger declines in U.S. casualty pricing.
- U.S. composite rate decreases accelerated and were higher than the overall global rate declines, largely driven by casualty lines, which declined 2.3 percent on average, after having risen by 0.4 percent in the first quarter.
- The change in U.S. casualty lines was largely due to an increase in the average rate of decline in workers’ compensation pricing and a smaller, continuing increase in average auto liability pricing. General liability renewal rates also declined in the second quarter after posting a slight increase in the previous quarter.
- The global industry’s combined ratio dropped below 100 percent to 99.7 percent, said the report, quoting figures from A.M. Best. Marsh noted that at the end of last year, the industry’s combined ratio rose above 100 percent for the first time since 2012.
Marsh describes the index as a proprietary measure of global commercial renewal rates, representing the world’s major insurance markets and comprising 90 percent of Marsh premium.