Global commercial insurance rates fell for the eighth consecutive quarter in the three months to March 31, according to Marsh.

The latest drop was driven by an oversupply of capital, its Global Insurance Market Quarterly Briefing says.

As rates continue to decline, consolidation in the insurance and reinsurance markets accelerates.

This trend is expected to continue and is “a clear sign that the industry is experiencing excess capital levels”, according to Marsh.

“These macro market forces led to decreases across regions and in most major lines of business, with cyber insurance a notable exception.”

The Asia-Pacific region experienced the largest composite rate decrease, followed by continental Europe, the UK, Latin America and the US.

Marsh International Division President David Batchelor says by insurance line, property showed the largest rate drop across all regions in the March quarter, led by continental Europe and Asia-Pacific.

Casualty insurance rates fell across all regions, but more modestly than property.

“The abundance of capital in the primary markets and in reinsurance capacity, including new alternative capital, is driving increased competition [and] forcing rates lower,” he said.

US cyber insurance is one of the few areas where average rates increased. The capacity for cyber remains strong and is expanding, Marsh says.

Cyber Practice Leader Tom Reagan says companies are seeking more coverage and higher limits.

“Given the nature of the uncertainty about future loss experience currently existing for cyber, rate levels have generally been increasing, even for companies without meaningful cyber losses to date.”