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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance

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The COVID-19 Pandemic: Opportunities and Implications for Captive Insurance explores the challenges presented by today's business and economic upheaval, as well as the hardening insurance market, and what it means for the captive insurance industry.

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Global Commercial Prices Up 19 Percent in Second Quarter: Marsh Index

An arrow curving into an upward curve with a percent sign on top
August 12, 2020

Global commercial insurance prices increased 19 percent in this year's second quarter, according to Marsh's quarterly Global Insurance Market Index. It was the eleventh consecutive quarter of price increases, according to Marsh.

The second-quarter increase was the largest since Marsh launched the index in 2012, and it follows year-over-year average price increases of 14 percent in the first quarter and 11 percent in the fourth quarter of 2019.

As with the first quarter, average price increases were driven principally by increases in property insurance rates and financial and professional lines, a Marsh statement said.

Global property insurance prices were up 19 percent and global financial and professional lines were up 37 percent, while global casualty pricing was up 7 percent on average, according to the Marsh index.

Composite pricing in the second quarter increased in all geographic regions for the seventh consecutive quarter, Marsh said.

The United States (18 percent), the United Kingdom (31 percent), Continental Europe (15 percent), and Pacific (31 percent) regions all had double-digit pricing increases, Marsh said. Pricing increases in those regions were largely driven by increases in property and directors and officers (D&O) coverages.

US public company D&O prices increased 59 percent on average, with more than 90 percent of Marsh clients experiencing an increase. In the United Kingdom, D&O pricing increases averaged over 100 percent, according to Marsh. The situation was similar in Australia, where a lack of competition has resulted in a capacity shortage, Marsh said.

The Global Insurance Market Index is a proprietary measure of global commercial insurance premium pricing change at renewal, representing the world's major insurance markets and reflecting nearly 90 percent of Marsh's premium.

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