Property Rates Fell in the 2nd Quarter — First Drop Since 2017

Aon issued a report this week on property rates. It found for the first time since 2017 rates for property insurance have fallen. Company Property Practice Leader Vincent Flood said lower catastrophe losses helped insurers return to profitability.

The average rate dropped 0.94% in the second quarter.

“We, along with our clients, are excited that rates are finally decreasing,” Flood said. “Clients definitely had rate fatigue.”

Losses have hit insurers hard since 2020 when they rose 30% in the third quarter of that year. Rising interest rates that caused investors to leave the reinsurance market have also put pressure on the segment.

Flood expects rates to continue moderating if losses remain low for the rest of the year.

“If we were to have a significant event, then I would see the market stabilizing again,” he said. “But absent of that, I think we’ll continue to see rates decline in 2025.”

Source link: Insurance Business America — https://bit.ly/4eANxg4