Marsh reveals that insurance prices increased by 1% globally in the first quarter

Insurance prices increased globally by 1% in the first quarter of 2024 (a decrease compared to the 2% recorded in the fourth quarter of 2023), according to the Global Insurance Market Index released this Monday by Marsh, a company of the Marsh Group McLennan is a global leader in risk consultancy and insurance brokerage.

Commenting on the report, António Morna, Placement Director at Marsh Portugal, argues that “a continued moderation of insurance rates and a greater appetite from insurers, especially for well-managed risks, will be welcomed by clients who continue to face a large global economic and geopolitical uncertainty”.

“In a rapidly changing risk landscape, organizations will be pressured to improve their risk management capabilities and become more resilient to global shocks. We are working closely with our clients to ensure they have the right tools to face these challenges and benefit from continually improving market conditions,” he adds.

Price increases remained relatively consistent in most regions, which recorded a slight decrease, according to the Global Insurance Market Index.

The evolution was mainly due to the reinforcement of the trend towards decreasing rates in financial, professional and cyber lines and the increase in competition between insurers in the global material damage market.

On average, rates decreased by 2% in the United Kingdom, Asia, the Pacific, Canada and India, the Middle East and Africa, while they increased by 3% in the United States and Europe and 5% in Latin America and the Caribbean.

Among other conclusions, the report highlights that material damage insurance premiums increased, on average, by 3%, a slight decrease compared to the 6% recorded in the fourth quarter of 2023.

In the United States, companies with asset concentrations in disaster zones such as the Gulf of Mexico, the Atlantic coast and California have begun to see lower increases or even reductions in rates compared to higher increases in recent years;

The Global Insurance Market Index also says that liability premiums increased by 3%, maintaining the rate of increase seen in the previous five quarters, due to concerns about the size of jury premiums in the United States.

For the seventh consecutive quarter, global prices across financial and professional lines declined. Driven by rate reductions and increased competitiveness – particularly in the United States, United Kingdom, Pacific and Canada – prices decreased, on average, 7% in the first quarter, compared to 6% in the previous quarter, concludes the leader worldwide in insurance brokerage and risk consultancy.

The same study concludes that, globally, the increase in cyber insurance premiums decreased by 6%, compared to the 3% decrease recorded in the previous quarter. Insurers are increasingly focusing on organizations’ cybersecurity control capacity, seeking to improve cyber resilience year after year.