The Asia-Pacific region is leading the global market in decreasing premium rates, according to Marsh.

Its latest market briefing says global commercial insurance rates in the second quarter fell by a composite 5%, meaning falls have now been recorded in nine consecutive quarters.

The Asia-Pacific region was worst affected, with composite rate decreases of more than 7.5% in the second quarter, followed by Continental Europe, Latin America and the US.

Competitive market conditions, an abundance of capacity and a lack of major losses contributed to decreases in most lines of business for the quarter, Marsh says.

Specialised coverages in a firming cyber insurance market were among the exceptions, while property insurance showed the largest rate declines.

Andrew Chester, the CEO of specialist property, casualty and terrorism insurance broker Bowring Marsh, says capacity in the international marketplace remains abundant.

“In certain cases, there is an oversubscription of capacity for limits being purchased, both of which continue to drive a reduction in rates and provide additional limits of coverage.

The report says surplus levels remain at or near record levels, which has helped to drive the competitive marketplace. “Additionally, the market has seen significant M&A activity, a possible reaction to companies’ appetites for growth and differentiation in an increasingly competitive environment.

“Alternative capital continues to flow into the industry and is creating an additional source of risk transfer, fuelling competition, and helping to drive rate levels lower.

“It is anticipated that unless there is a major catastrophe… the next 12 months will continue to bring favourable market conditions for clients.”