Marsh’s commercial rates index shows further declines in the Australian-dominated Pacific region, with a 6% drop in the third quarter. 

There were reductions in most lines, including property, financial and professional, and cyber, while casualty rates flattened.

Marsh says strong property insurer competition is a notable factor, with more long-term agreements being offered to clients, indicating a stable outlook.  

Cyber rates fell 11% as insurer capacity and competition grew, with the global broker identifying a “willingness to negotiate on critical suppliers and various coverages”.  

Financial and professional lines dropped 14%, but Marsh warns of lower retention of policies, with more customers struggling to renew with broad coverage.  

Casualty rates were unchanged following the previous quarter’s 1% uptick, continuing a slowing trend despite insurer scrutiny of specific risks.

Marsh’s report for the previous quarter showed an overall 5% rate drop across the region.  

The latest report also shows the first global rate drop in seven years – a 1% decline. Property prices fell furthest, with financial lines and cyber down too, while casualty rates rose.  

Marsh specialty and global placement president Pat Donnelly says the results are a “positive development” for clients.  

See the full report here.

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