Global Commercial Insurance Pricing Up 6 Percent

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

• Average commercial insurance pricing increased nearly 6 percent in second quarter 2019, the largest increase since the survey began in 2012, and the seventh consecutive quarter of average pricing increases.
• Globally, on average, pricing for property risks increased 8 percent, financial and professional lines rose almost 10 percent, and casualty increased nearly 1 percent. In general, pricing increases were more pronounced in large accounts, particularly in property and directors and officers liability (D&O).
• Composite pricing in the second quarter increased in all geographic regions for the third consecutive quarter, largely driven by rates in property and D&O coverages.
• The Pacific region had the largest composite pricing increase in the index (18 percent), a quarterly trend that has continued for 2 years. Pacific composite pricing was driven by increases in D&O rates (many organizations experienced high double-digit increases), as well as increases in both catastrophe and noncatastrophe property.
• The United States, United Kingdom, and Asia all reported average pricing increases of 3 percent or higher.

Commenting on the findings, Dean Klisura, president of global placement at Marsh, said, "Global insurance pricing increased 6 percent in Q2 2019, double the rate observed in Q1. Although global pricing has now increased every quarter for nearly 2 years, market capacity remains stable in most products and geographies."