Global insurance prices continued to rise in the third quarter of this year, according to the Marsh Risk Management Global Insurance Index.

Rates on major lines increased 0.9% from the second quarter – continuing a trend that began in the second half of last year – but showed signs of stabilising, Marsh says.

Rates at renewal grew 1.4% on average, and Marsh says although they vary across lines of business, they may also be stabilising.

The index is a composite of changes in insurance costs over a rolling 12-month period.

Andrew Chester, CEO of Bowring Marsh, the specialist international placement broker at Marsh, says the global insurance market “continues to be in a state of clear transition, and the results for individual insureds vary significantly”.

“With capacity and appetite for well-managed risk still strong, insureds are still able to achieve favourable results on renewal in many lines of business.”

Financial and professional rates rose 1.9% on average at renewal, continuing a firming trend that began last year.

Financial institutions in every major Eurozone country experienced increases in liability insurance rates as insurers tightened conditions, Marsh says.

Property insurance rates stabilised on a lack of major losses from natural catastrophes, rising an average of 1.2% on renewal. Marsh expects this trend to continue, with flat renewals becoming more common by the end of the year.

Insureds with clean loss histories were more likely to experience flat renewals but those with significant natural catastrophe exposures had higher increases, Marsh says.

Some insureds may benefit from rate discounting if underwriters try to increase premium volumes this year, it adds.

Casualty insurance rates rose 1.2% on average in the quarter, the report says. Underwriters are cautious about risks such as fracking, cyber liability and wildfires in the US. Marsh says tightened terms and conditions for these risks are becoming common.

US companies were more likely to experience rate increases than decreases in major lines of insurance, Marsh says.