28 February 2018Insurance

Average insurance rates increase for first time since 2013: Marsh

Average global insurance pricing increased for the first time in the fourth quarter of 2017 since Q1 2013, according to Marsh’s Global Insurance Market Index. It said this was mainly driven largely by global property insurance pricing boosted on the back of large catastrophe losses in the third quarter.

It showed that average pricing increased by 0.8 percent in the quarter, compared to a decrease of 1.9 percent in Q3 2017.

Globally, property insurance pricing increased 3.2 percent, compared to a 2.4 percent decrease in the previous quarter. Financial and professional lines pricing increased 0.1 percent in Q4, while casualty pricing declined by 1.5 percent. In comparison, both financial and professional lines and casualty pricing decreased in Q3 by 1.4 percent and 1.7 percent, respectively.

Regionally, average pricing increased in the UK, Latin America and Australia, which had its fourth consecutive quarter of pricing increases. Average pricing decreased in the US, Continental Europe, and Asia, albeit at slower rates than what was observed in Q3.

It also noted that US cyber insurance pricing increased for the first time since Q4 2016.

Dean Klisura, president, global placement and specialties at Marsh, said: “Losses from Hurricanes Harvey, Irma, and Maria, and wildfires in California drove increases in property pricing in the US. Although property pricing generally increased, market capacity remains abundant. Pricing in all global regions showed either a moderate increase in the fourth quarter, or a slowing of the pace of decrease.”

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