Commercial insurance prices fell 4% worldwide on average in the third quarter, dragged by competition among insurers and favorable reinsurance pricing, a report by insurance broker Marsh McLennan said on Thursday.

WHY IT MATTERS

The easing follows years of steep price hikes that peaked in 2021, offering relief to businesses and households seeking protection against financial risks, property damage and natural disasters.

Intense competition among insurers to attract and retain customers is driving down prices and giving buyers more options and flexibility in their coverage.

CONTEXT

The third quarter marks the fifth straight quarterly decline in Marsh's Global Insurance Market Index.

Rates for property, cyber, and financial and professional insurance declined across every region.

Property insurance rates fell the most, declining 8% globally. Cyber coverage fell 6% and financial and professional lines slipped 5%, according to the report.

Casualty rates were the only segment to buck the trend, rising 3% globally, led by an 8% increase in the U.S. amid a rise in costly jury verdicts.

KEY QUOTE

"With the exception of U.S. casualty, clients are benefiting not only from lower rates but also from opportunities to negotiate improved terms and broader coverage," said John Donnelly, Marsh's president of global placement.

WHAT'S NEXT

The insurance rates are expected to keep falling in the coming quarters, unless large catastrophe losses or a sharp rise in claims disrupt the trend.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Sahal Muhammed)