Marsh has released its Global Insurance Market Index for the first quarter of 2019. Key findings include:
· Average commercial insurance prices increased 3% 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%), 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.
Commenting on the findings, Dean Klisura, President, Global Placement at Marsh, said: “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.”