Average commercial insurance prices increased 11% globally in the fourth quarter, according to Marsh’s latest Global Insurance Market Index. Price increases were driven primarily by increases in property insurance rates and financial and professional lines.
Among the survey’s key findings:
- Q4 of 2019 was the ninth consecutive quarter of average price increases.
- Globally, average pricing for property risks increased 30%; financial and professional lines increased nearly 18%, and casualty rose 3%.
- Composite pricing increased in all geographic regions for the fifth straight quarter.
- For the first time since the index began, all global regions reported average pricing increases of 5% or higher.
- The Pacific region posted the largest composite pricing increase at 21%. Composite pricing in the region was driven largely by increases in directors and officers rates and increases in property.
“The impact of natural catastrophe losses and increasing concern about litigation trends have led to price increases for many insurance buyers,” said Dean Klisura, president of Global Placement and Advisory Services at Marsh. “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.”