Global commercial insurance pricing up
The pricing for global commercial insurance has now increased for the eighth consecutive quarter, according to Marsh’s Global Insurance Market Index for Q3 2019.
The findings revealed that the average commercial insurance pricing increased 8 percent, which represents the largest increase since the firm’s survey began in 2012.
Property risks pricing rose by 10 percent, financial and professional lines increased by almost 14 percent; and casualty increased by 1 percent.
The Marsh index found that composite pricing in Q3 increased in all geographic regions for the fourth consecutive quarter. It said this was largely driven by rates in directors and officers (D&O) coverage and property. In addition, all regions saw composite pricing increases for a fourth consecutive quarter. The Pacific region had the largest composite pricing increase in the index with 19 percent, representing a quarterly trend that has continued for almost three years, Marsh said. Pacific composite pricing was driven by increases in D&O rates, as well as increases in property rates.
In the US, UK, and Asia, insurers saw average pricing increases of 5 percent or higher.
Dean Klisura, president, global placement at Marsh, said: “Global insurance pricing increased 8 percent in Q3 2019, as the market continues to firm in most regions. Global pricing has now increased every quarter for nearly two years, and market capacity is starting to show signs of tightening in certain geographies and lines of business.”
