Commercial insurance rates climb further
Commercial insurance pricing increased for the fourth consecutive quarter in the third quarter of 2018 by more than 1 percent, driven by property and financial and professional lines, according to the most recent Global Insurance Market Index compiled by Marsh.
Average commercial insurance prices increased by 1.4 percent in the third quarter of 2018, after 1.2 percent in the second quarter, 0.9 percent in the first quarter and 0.8 percent in the fourth quarter of 2017.
Prices during the third quarter of 2018 generally fluctuated within a relatively narrow range across most products and geographies, the report said.
Globally, pricing for property risks increased more than 3 percent on average in the third quarter, in line with the prior three quarters. Casualty prices declined nearly 2 percent on average, continuing a trend of year-over-year declines stretching back to 2013. Pricing for financial and professional lines continued to accelerate, increasing more than 3 percent on average for the second consecutive quarter.
Regionally, Australia again had the largest pricing increases in the index. Average prices also increased in the UK and Latin America, Marsh noted. Prices decreased slightly in the US, Continental Europe, and Asia.
“Average prices have increased moderately for four consecutive quarters as the marketplace continues to respond to several factors, including recent CAT events and increased claim activity on certain non-property coverages,” said Dean Klisura, president, global placement and specialties at Marsh. “However, market capacity remains strong in most product areas and geographies, limiting overall price increases,” Klisura added.
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