Global average commercial insurance prices increased 11% in the fourth quarter, according to the Global Insurance Market Index released today by Marsh, the world’s leading insurance broker and risk adviser. Average price increases were driven principally by increases in property insurance rates and financial and professional lines. Among other findings, the survey noted:
· The fourth quarter of 2019 was the ninth consecutive quarter of average price increases.
· Globally, on average, pricing for property risks increased 13%; financial and professional lines rose nearly 18%; and casualty increased 3%.
· Composite pricing in the fourth quarter increased in all geographic regions for the fifth consecutive quarter.
· All global regions reported average pricing increases of 5% or higher for the first time since the index began.
· The Pacific region had the largest composite pricing increase in the index (21%), a quarterly trend that has continued for three years. Pacific composite pricing was largely driven by increases in directors and officers (D&O) rates, as well as increases in property.
Commenting on the findings, Dean Klisura, President, Global Placement and Advisory Services at Marsh, said: “The impact of natural catastrophe losses and increasing concern about litigation trends have led to price increases for many insurance buyers. Global pricing has now increased every quarter for two years, and while capacity largely remains strong, there has been tightening in certain product lines and regions.”