Global Commercial Insurance Prices Increase 6th Consecutive Quarter

Marsh recently released its Global Insurance Market Index for the first quarter of 2019 with the following key findings.

• Average commercial insurance prices increased 3 percent in Q1 2019, the largest increase since the survey began in 2012.
• Q1 2019 represents the sixth consecutive quarter of average commercial insurance pricing increases.
• 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 percent), a trend that has continued for 8 quarters. The United Kingdom and Continental Europe both reported average price increases of 2 percent or higher.
• Globally, pricing for property risks increased by almost 5 percent on average, slightly above the rates recorded in the previous 4 quarters. Casualty prices declined nearly 1 percent on average, continuing a trend started in 2013.
• Average pricing in financial and professional lines increased by almost 6 percent. All global regions experienced a rise, primarily driven by increases in D&O insurance.

Dean Klisura, president, global placement at Marsh, said, "While 3 percent 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."