Commercial Insurance Rates Climb 14 Percent in Q1: Marsh

May 12, 2020

Global average commercial insurance prices increased 14% in the first quarter of 2020 – but the rate hikes were not due to the COVID-19 pandemic, according to insurance broker Marsh in its quarterly Global Insurance Market Index.

Although the COVID-19 global pandemic had an insignificant impact on pricing in the first quarter, the reported increase was the largest year-over-year increase in the Marsh Global Insurance Market Index since its inception in 2012.

Average price increases were driven principally by increases in property insurance rates and financial and professional lines, 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,” said Dean Klisura, president, Global Placement and Advisory Services at Marsh, in comments accompanying the survey.

The survey’s findings included the following:

Q1 Prices in U.S.

Breaking the report into regions, Marsh said property pricing in the U.S. has increased for 10 consecutive quarters. Other U.S. survey findings include:

Q1 Prices in UK

In the UK, composite prices rose for the 10th consecutive quarter with overall insurance pricing increasing by 21%.

Other UK survey findings include:

Q1 Prices in Latin America/Caribbean

Overall insurance prices firmed for the 10th consecutive quarter in the Latin America and Caribbean (LAC) region, increasing by 6%.

Other LatAm/Caribbean survey findings include:

Q1 Prices in Continental Europe

Overall price increases in Continental Europe (CE) rose by 8%, driven by property and financial and professional lines. Other Continental European survey findings include:

Q1 Pacific Prices

Overall prices increases in the Pacific region rose by 23%, continuing an upward trend that began in 2015. Other Pacific region survey findings include:

Q1 Asia Prices

Overall composite prices in the Asia region increased 6% from Q1 2019. Other Asia region survey findings include:

Editor’s Note: All references to pricing and pricing movements in this report should be considered averages, unless otherwise noted.

Source: Marsh

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