Global commercial insurance pricing was up 8% in the third quarter, marking the eighth consecutive quarter of pricing increases, according to a new study from Marsh.
The 8% pricing jump was the largest increase since Marsh began releasing its Global Insurance Market Index survey in 2012. Globally, pricing for property risks rose by an average of 10%, while financial and professional lines rose by nearly 14% and casualty rose by 1%.
Composite pricing increased in all geographic regions in the third quarter, the fourth consecutive quarter of increases, Marsh reported. The increases were driven largely by rates in directors’ and officers’ coverage and property.
The Pacific region posted the largest composite pricing increase at 19%, a quarterly trend that has continued for almost three years. The US, UK and Asia all reported pricing increases of 5% or higher.
“Global insurance pricing increased 8% in Q3 2019, as the market continues to firm in most regions,” said Dean Klisura, president of global placement at Marsh. “Global pricing has now increased every quarter for nearly two years, and market capacity is starting to show signs of tightening in certain geographies and lines of business.”