The Marsh Global Insurance Market Index captures a rolling four-quarter view of rate movement, providing a quarter-to-quarter look at changes in the marketplace.

Related: Global P&C insurance profitability declines again, according to Swiss Re research

Rate decreases are steady throughout, with one exception

Insurance rates continued to decline globally, on average, in the second quarter of 2017 across property, casualty, and financial and professional lines. In global casualty lines, the rate of decline was higher in the second quarter than the first, largely driven by stronger declines in U.S. casualty pricing. 

In Continental Europe, average property rates (-2.3%) are declining at the lowest rate since 2014.

The Pacific, however, is reporting average property rates (6.3%) increases, the first since 2013. 

Related: IVANSIndex: Positive results continue throughout Q2

Commercial insurance market, by region

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    • The U.S. composite insurance rate decline was higher than the overall global rate in the second quarter of 2017. This represents a change from the first quarter and was driven largely by casualty lines, which declined 2.3%, on average, after having risen by 0.4% in the first quarter. The change in casualty lines was largely due to an increase in the average rate of decline in workers' compensation pricing and a smaller, continuing increase in average auto liability pricing. General liability renewal rates also declined in the second quarter after posting a slight increase in the previous quarter.
    • U.K. composite insurance rate decreases in the second quarter of 2017 remained, on average, greater than the global rate of decline. The average rate of decline for the U.K. was 4.2% in the quarter compared to 4.8% in the prior quarter. Renewal rates declined in the U.K. across all major product lines, although the average rate of decline moderated in casualty from 4.2% to 1.7%.
    • Continental Europe's composite insurance rate decreases in the second quarter of 2017, on average, were slightly above the global average rate of decline. A moderation in average property rates — from a decline of 5.3% in the first quarter to a decline of 1.9% in the second — helped bring the region's composite average closer to the global rate.
    • Composite insurance rate decreases in Latin America in the second quarter of 2017 were below the global composite average. Casualty insurance renewal rates increased, on average, by 6.1% in the second quarter, marking their fourth consecutive quarter of increases. Financial and professional liability coverage rates declined, on average, for the second consecutive quarter, but at a lower rate than in the prior quarter. Property renewal rates continued to decline, on average, though at a more moderate rate than in the previous quarter.
    • Composite insurance rates for the Asia region in the second quarter of 2017 continued a decrease greater than the global rate of decline. Average property rates in the region decreased by 2.4%. Financial and professional liability rates fell, on average, by 3.4%. Average casualty rates continued to decrease at a moderating pace, declining by 5.2%, on average, in the quarter.

See also:

Lloyd's of London to cut 10% of U.K. staff as rates bite

Workers' comp market shows underwriting profit but compression ahead, says Moody's report