Global commercial insurance rates fell one per cent in the third quarter of 2024, according to the Marsh McLennan Global Insurance Market Index. The firm says it is the first time the index has recorded a quarterly decline since the third quarter of 2017.

In Canada, they say rates decreased three per cent during the quarter.

Globally, casualty lines rates increased six per cent after rising three per cent in each of the previous seven quarters, they say, “largely driven by concerns around large jury awards in U.S. courts.” 

Financial and professional lines decreased by seven per cent globally, the ninth consecutive quarter of declines – rates decreased in every region – and cyber insurance rates decreased six per cent globally, again with decreases reported in every region. “More non-cyber policies contained cyber exclusions,” they write.

Financial and professional lines 

Canadian rate declines include a one per cent decrease in property insurance rates, a four per cent decrease in casualty insurance rates, a five per cent decline in financial and professional lines rates and a one per cent decrease in cyber insurance rates.

In property, they say ample capacity continues to be available in Canada and internationally. Underwriters, meanwhile, continue to scrutinize secondary perils management, they add. Competition increased among casualty insurers, “generally resulting in greater limits being deployed as insurers entered new classes of business and industries and were typically more willing to negotiate terms and conditions,” the report states. “Significant losses and settlements – from claims related to opioids, mass shootings, vehicle collisions, non-owned auto exposures, class actions arising from PTSD and product liability – generally led to more restrictive policies being offered and an increase in underwriting information requirements.” 

Among cyber insurers, coverage continues to broaden, at times including the removal of coinsurance requirements and increased coverage sub-limits. “Insurers continued to view clients with cybersecurity improvements favourably, typically opening the possibility for lower retentions,” they conclude.