Property Cover Drives 3rd Consecutive Quarter of Global Commercial Insurance Prices Hikes

August 10, 2018

Global commercial insurance prices rose in the second quarter of 2018, marking the third consecutive quarter of increases, according to Marsh’s “Global Insurance Market Index.”

These average increases were driven by property insurance, which continued to be affected by 2017’s catastrophe losses, as well as financial and professional lines, said Marsh’s quarterly market index report. The report measures commercial insurance premium price changes at renewal, covering the world’s major insurance markets and comprising 90 percent of Marsh’s premium.

Globally, property insurance prices increased 2.3 percent, on average, during the second quarter, which was slightly less than that observed in the previous two quarters, the report said.

Financial and professional line prices increased 3.3 percent on average, with much of the increase due to directors and officers (D&O) insurance prices in multiple regions.

Casualty prices declined an average of 1.4 percent around the globe, continuing a trend of annual rate declines, stretching back to 2013,

Australia again had the largest price increases, at an average of 13 percent.

While average prices trended up overall (driven primarily by the UK and Australia), pricing decreased slightly in Continental Europe and Asia.

“The global property insurance market continues to be impacted by last year’s losses, and we are now seeing increases in financial and professional lines pricing in several regions,” said Dean Klisura, president, Global Placement and Specialties at Marsh. “However, overall pricing is generally stable across all lines of business and market capacity remains strong.”

The report also covered regional trends, including:

Source: Marsh

*This story ran previously in our sister publication Insurance Journal.