Global insurance rates declined for the 15th consecutive quarter due to abundant capacity and a lack of significant catastrophe losses, according to Marsh.

However, capacity may be moderating and combined operating ratios may be increasing, signalling possible imminent rate rises.

The fourth quarter completed an entire year in which the average rate of insurance pricing decline moderated – a first since Marsh began its Global Insurance Market Index in 2012.

The decline across all major insurance lines was largely driven by falls in property insurance prices.

“Overcapacity in the market, coupled with an absence of significant insured losses – despite several notable events – kept the pricing environment generally soft,” the broker says.

“Early indications that capacity may be moderating and that combined operating ratios may be increasing could be harbingers of looming rate increases, as carriers seek to boost profitability and keep combined operating ratios below 100%.”

Asia-Pacific composite rate drops were, on average, more moderate than the global rate in the fourth quarter, with property rates in the region also declining below the global rate.

US cyber liability rates increased for the sixth consecutive quarter, but this did not deter clients, with numbers rising 25% across all industries. The largest take-up was in healthcare, communications, media and technology.

UK composite pricing decreases were, on average, greater than the global rate of decline in the fourth quarter, driven by soft markets across all major commercial lines.

Brexit has yet to make a material impact on commercial insurance pricing.