Commercial Insurance Prices Were Up 3% Globally, 1.1% in U.S. in Q1: Marsh
Average global commercial insurance prices increased 3% in the first quarter of2019, according to broker Marsh.
This represents the sixth consecutive quarter of average commercial insurance pricing increases, Marsh said in its Global Insurance Market Index for the first quarter of 2019.
“While 3% is the largest average increase in insurance pricing we have seen since the index began in 2012, market capacity remains strong in most products and geographies,” said Dean Klisura, president, Global Placement at Marsh.
Casualty prices declined globally 0.7%, continuing a trend of year-over-year declines stretching back to 2013.
Insurance pricing in the first quarter of 2019 in the U.S. increased by 1.1%. Casualty pricing, which has decreased in the U.S. in all but one quarter since 2014, did so again, down 1.7%.
Other findings from the first quarter report:
- Composite pricing in Q1 increased in all global regions for the second consecutive quarter, driven by rate change in property and directors and officers (D&O) coverages.
- Regionally, Pacific had the largest price increases in the index (>10%), a trend that has continued for eight quarters. The UK and Continental Europe both reported average price increases of 2% or higher.
- Globally, pricing for property risks increased by almost 5% on average, slightly above the rates recorded in the previous four quarters. Casualty prices declined nearly 1% on average, continuing a trend started in 2013.
- Average pricing in financial and professional lines increased by almost 6%. All global regions experienced a rise, primarily driven by increases in D&O insurance.
For Marsh’s U.S. composite pricing, Increases were at the highest rate since 2013. Other U.S. findings:
- Property pricing increased 4%, and has now increased each quarter since late 2017.
- Large, multi-layered property programs (with gross written premium greater than $1 million) led
- the pricing increases, up nearly 7%.
- Financial and professional liability insurance rates in the U.S. increased by 2.8%, driven by pricing in directors and officers (D&O) liability.
- D&O pricing for public companies increased nearly 6% in the first quarter, with 77% of clients experiencing an increase, the highest percentage of increases in several years.
Source: Marsh
