Marsh says Australian commercial premium rates fell 5% in April-June, the second consecutive quarterly decline, and global commercial rates were flat – ending a 26-quarter streak of increases.

Australian property premium rates declined for the first time in more than seven years in the second quarter, easing 4%. 

Marsh specialty and global placement president Pat Donnelly says overall rates trends are positive for insurance buyers.

“We have seen the continued moderation of the global composite rate over the past few years which is a positive movement for our clients,” he said.

Brokers still have an important role to play though: “There remains rate increases in some lines, we see significant opportunities to help clients navigate the complexity they’re facing.”

International and wholesale markets drove competition in the quarter, with long-term agreements offered to select clients – some including reductions in year two, according to Marsh’s Global Insurance Market Index.

However, claims-affected and catastrophe-exposed accounts typically continued to experience rate increases, and rates for small to medium property clients on average ranged from no change to 5% rises.

Property insurance rates globally were flat, while casualty lines increased 3%.

In the Pacific region, where Australia makes up about 80% of business tracked by the index, casualty insurance rates rose just 1%. Financial and professional lines rates dropped 12%, with rates for directors’ and officers’ liability down 15%-20% on average and long-term agreements offered to some clients.

Pacific cyber insurance rates declined 5% as improved competition from insurers led to more coverage and retention options.

The quarterly index is the global broker’s proprietary measure of commercial insurance rate change at renewal. The 5% overall decline in the Pacific outpaced falls of 3% in the UK and Asia, and increases of 1% in the US and Europe.