Third-Quarter Global Commercial Insurance Pricing Increased but Limited
December 06, 2018
Marsh's Global Insurance Market Index for the third quarter of 2018 found that average commercial insurance pricing has increased for the fourth consecutive quarter. On average, the findings showed prices increased by slightly more than 1 percent in the third quarter, driven by increases in property and financial and professional lines.
Furthermore, the index found that while prices rose slightly, on average, the market remained stable. Prices during the quarter generally fluctuated within a relatively narrow range across most products and geographies, according to the report.
Globally, pricing for property risks increased more than 3 percent on average, in line with the prior 3 quarters. Casualty prices declined nearly 2 percent on average, continuing a trend of year-over-year declines stretching back to 2013. Pricing for financial and professional lines continued to accelerate, increasing more than 3 percent on average for the second consecutive quarter.
Regionally, Australia again had the largest pricing increases in the index. Average prices also increased in the United Kingdom and Latin America. Prices decreased slightly in the United States, Continental Europe, and Asia.
Commenting on the findings, Dean Klisura, president, global placement and specialties at Marsh, said, "Average prices have increased moderately for four consecutive quarters as the marketplace continues to respond to several factors, including recent [catastrophe] events and increased claim activity on certain non-property coverages. However, market capacity remains strong in most product areas and geographies, limiting overall price increases."
December 06, 2018