LONDON (Reuters) - Global commercial insurance rates fell 1% in the third quarter of 2024, the first quarterly decline recorded in seven years, the Global Insurance Market Index by broker and risk advisor Marsh on Thursday showed.

The index tracks the change in rates at renewal across four major commercial insurance product lines, namely property, casualty, cyber and financial & professional.

Marsh said the fall in the composite rate - the first since the third quarter of 2017 - was largely driven by increased competition among insurers in the global property market.

On average, composite rates decreased in the Pacific by 6%, in the UK by 5%, in Asia by 4%, in Canada by 3%, and in the India, Middle East, and Africa region by 2%.

Rates were flat in Europe and increased by 3% in the U.S. and in the Latin America and the Caribbean (LAC) region.

Property insurance rates globally fell 2%, after being flat in Q2 2024 and experiencing a 3% increase in Q1 2024.

Rates on financial and professional lines dropped by 7% globally — the ninth consecutive quarter of declines — with rate decreases recorded in every region, the index showed.

Cyber insurance rates decreased 6% globally — the same rate of decrease as the previous two quarters — with decreases in every region.

Casualty insurance was the only major product line to see an overall increase in the period, Marsh said. Rates rose by 6% globally after rising in each of the previous seven quarters.

Pat Donnelly, President, Marsh Specialty and Global Placement described the rate falls in three of the four major insurance product lines as "a positive development" for clients.

(Reporting by Sinead Cruise; Editing by Christina Fincher)