Commercial rates in the Pacific region fell 11% in the third quarter, according to Marsh’s latest Global Insurance Market Index.

Property insurance rates in the region fell 15% as insurers competed for business, offering terms including higher limits, lower deductibles and removal of mandatory endorsements.

The report says global rates fell 4%, the same decline as in the second quarter, amid strong competition and lower reinsurance pricing.

The Pacific region had the largest fall worldwide and Marsh president of global placement John Donnelly says there are opportunities to negotiate better terms and broader coverage.

He expects the trend to continue. Mr Donnelly notes rates for property, cyber, and financial and professional insurance fell globally. 

The third quarter brought the fifth consecutive drop in rates following seven years of quarterly increases. 

From the latest Insurance News magazine: See how the major insurers and broker groups fared last reporting season, and why some analysts expect tougher times ahead