COVID-19 to impact insurance pricing in 2020: Marsh

Global average commercial insurance prices increased 14 percent in the first quarter of 2020, the largest recorded since 2012, according to the new global insurance market index released by Marsh.

The increase comes despite the minimal impact of the COVID-19 global pandemic on pricing in the quarter. Marsh said the ongoing pandemic is likely to have an impact on pricing for the balance of 2020.

According to the report, average price increases were driven principally by increases in property insurance rates and financial and professional lines.

The first quarter of 2020 was the tenth consecutive quarter of average price increases.

Globally, on average, pricing for property risks increased 15 percent; financial and professional lines rose nearly 26 percent; and casualty increased 5 percent.

The composite pricing in the first quarter increased in all geographic regions for the sixth consecutive quarter.

The US (14 percent), UK (21 percent), and Pacific (23 percent) regions all experienced double-digit pricing increases, largely driven by increases in property, financial and professional lines, and directors and officers (D&O) rates in particular.

Dean Klisura, president, global placement and advisory services at Marsh, said: “Pricing was trending higher in the first quarter, prior to any meaningful impact from losses associated with COVID-19. However, COVID-19 will likely have an impact on pricing for the balance of 2020.”