Commercial insurance rates see 'largest increase' in Q2 2019: Marsh

Global commercial insurance rates were up 6 percent in the second quarter 2019, marking the seventh consecutive quarter of price increases, new data from Marsh has revealed.

Marsh noted that it was the "largest increase" since its insurance market index survey began in 2012.

Globally, on average, pricing for property risks increased 8 percent, financial and professional lines rose almost 10 percent, and casualty increased nearly 1 percent. In general, pricing increases were more pronounced in large accounts, particularly in property and directors and officers liability (D&O).

According to the report, composite pricing in the second quarter increased in all geographic regions for the third consecutive quarter, largely driven by rates in property and D&O coverages.

The Pacific region had the largest composite pricing increase in the index (18 percent), a quarterly trend that has continued for two years. Pacific composite pricing was driven by increases in D&O rates (many organisations experienced high double-digit increases), as well as increases in both cat and non-cat property.

The US, UK and Asia all reported average pricing increases of 3 percent or higher.

“Global insurance pricing increased 6% in Q2 2019, double the rate observed in Q1," said Dean Klisura, president, global placement at Marsh. "Although global pricing has now increased every quarter for nearly two years, market capacity remains stable in most products and geographies.

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