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US Insurance Market Rates

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the US insurance market. 

24/10/2024

Q3 2024

US rate increase driven by casualty coverage

Insurance rates in the third quarter of 2024 in the US increased 3%.

US third quarter 2024

US composite insurance rate change 

US property

US property insurance rate declines

Property insurance rates declined 1%, compared to an increase of 2% in the prior quarter.

  • Additional insurance capacity was available across industry segments and all layers within shared and layered program structures, which led to increased competition.
  • Policy terms remained generally stable with greater consistency across policies.
  • Strong financial results for insurers and stability in the reinsurance market drove both increased insurer risk appetite and capacity deployment.
  • Insureds with assets concentrated in catastrophe (CAT) zones — such as the Gulf of Mexico, Atlantic coast, or California — and those that had recently experienced higher than average rate increases generally saw above average rate decreases.
  • Underwriters continued to scrutinize valuations, although the reduction of inflation in 2023 and 2024 lessened their focus.
  • Certain sectors — including warehousing, food and beverage, and technical risk — faced increased scrutiny.
  • Clients typically explored options to assume more risk through increased retentions, assume capacity within their insurance program, and adopt alternative solutions, including captive insurance, parametric, or structured solutions.
  • Events generating above average losses could impact the current trend. We are keeping a close eye on the potential impact of the 2024 hurricane season.

US casualty

Casualty increases driven by auto liability repair costs and jury verdicts

Casualty insurance rates increased 10%; excluding workers’ compensation, the increase was 14%.

  • Workers’ compensation continued to attract strong interest from insurers; however, underwriters expressed concern about increasing reserves and rising medical costs.
  • Auto liability continued to pose challenges due to large jury verdicts, along with rising repair expenses.
  • General liability (GL) rates experienced some minor increases.
    • Clients in some industry classes generally experienced higher GL rate increases, including real estate, habitational and hospitality, public entity, and education.
  • In the umbrella and excess liability market, risk-adjusted rates increased 21% compared to 10% in the prior quarter. (Note: Where there was no program structure change, rates increased 20% and 5%, respectively.)
    • The cumulative loss cost trend has outpaced rate increases over the past five years.
    • Insurers typically limited capacity on individual risks to a maximum of $25 million, with a median of $15 million, due to adverse developments in the US litigation environment and global capacity management.
    • Increased frequency and high severity of auto claims impacted all business classes and vehicle types, as did higher severity trends in general/product liability claims, especially on pandemic and post-pandemic occurrences.
    • Some insurers focused on limiting/excluding coverage in such areas as per- and polyfluoroalkyl substances (PFAS), biometric, sexual molestation liability (SML), endocrine disruptors, and Israel/Palestine and Russia/Ukraine conflicts.
    • Rates on umbrella programs with favorable loss experience and low-hazard exposure increased in the 10% to 15% range, while those with adverse loss development and exposure concerns typically saw program changes and rate increases of 30% and higher.
    • Premises exposures, which have historically been viewed by underwriters as a somewhat lower risk, led in some cases to large verdicts, putting additional pressure on pricing.

US financial and professional lines

Financial and professional lines rates continue to decline

Financial and professional lines rates decreased 3%.

  • Directors and officers (D&O) liability rates continued to decline, though the pace of decreases moderated to 4%, compared to 5% in the prior quarter.
    • Many insurers sought to be moved off of high excess D&O layers in favor of side A or lower layers, putting downward pressure on rates in the lower excess layers.
    • Post-transaction renewals generally experienced rate decreases — specifically in the first three years after IPO or de-SPAC transactions.
    • Competition from new insurers and some legacy markets persisted; insurers typically sought to draw on overall relationships with clients to increase their level of D&O program participation.
    • Where an insurer desired but did not achieve an increase in its level of program participation, some issued non-renewals.
  • Fiduciary insurance rates decreased 2%.
    • Insurers continued to monitor and react to lawsuits that seek to apply the liability theories used in Employee Retirement Income Security Act (ERISA) excessive fee litigation to lawsuits involving health plans/pharmacy benefits managers (PBMs).
    • Litigation related to pension risk transfer has increased underwriting focus on defined benefit plans.
  • Errors and omissions (E&O) rates increased slightly while financial institution (FI) rates decreased 4%.

Cyber rates decrease for sixth consecutive quarter

Cyber insurance rates decreased 4%.

  • Rate reductions have decelerated since the first quarter of 2024, though insureds with no recent loss history and cybersecurity controls perceived as strong by insurers typically experienced greater rate reductions.
  • Approximately 20% of clients purchased additional limits this year.
  • More non-cyber policies contained exclusions for loss arising out of a cyber event, generally known as “silent cyber,” which led to increased focus on potential coverage gaps for property damage and bodily injury caused by a cyber event, as well as coverage solutions available to address the gaps.
  • Cyber risks associated with third-party vendors, including technology vendors, can lead to a single point of failure with widespread impact, as seen in recent events. Insurers and reinsurers sought to better quantify and address this exposure.

Our rates reflect the segment mix of Marsh’s client portfolio.

Regional analysis

City Light Trails

Global Insurance Market Index

Global Insurance Market Index

10/24/2024

The Global Insurance Market Index is our proprietary measure of global commercial insurance premium pricing change at renewal, providing insights on the world's major insurance markets.
Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

10/24/2024

Insurance rates in the UK declined 5% in the third quarter of 2024.
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Global Insurance Market Index

Latin America and Caribbean insurance rates

10/24/2024

Insurance rates in the third quarter of 2024 in the LAC region increased 3%.
Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe were flat in the third quarter of 2024.
Beautiful aerial view of the Sydney Opera house by the bay in Australia. Panoramic view.

Global Insurance Market Index

Pacific insurance rates

Insurance rates in the Pacific region declined 6% in the third quarter of 2024.
Shanghai skyline at night

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 4% in the third quarter of 2024.
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Canada insurance rates

Insurance rates in Canada declined 3% in the third quarter of 2024.
Skyscrapers in Abu Dhabi, United Arab Emirates.

India, Middle East, and Africa insurance rates

Insurance rates in the IMEA region decreased 2% in the third quarter of 2024.

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