Marsh’s recent edition of its Global Insurance Market Index for Q3 2018 found that average commercial insurance pricing around the world increased by more than 1% in the quarter.
The brokerage’s report attributes this uptick to increases in property, financial, and professional lines. This is the fourth straight quarter that commercial insurance prices have increased across the globe, Marsh noted.
“Average prices have increased moderately for four consecutive quarters as the marketplace continues to respond to several factors, including recent CAT events and increased claim activity on certain non-property coverages,” commented Marsh president of global placement and specialties Dean Klisura.
Despite the increases, Marsh found that the global commercial insurance market remained relatively stable, since the prices fluctuated within a relatively narrow range.
“… Market capacity remains strong in most product areas and geographies, limiting overall price increases,” Klisura explained.
Other significant findings of the report include:
- Global pricing for property risks increase more than 3% on average.
- Casualty prices declined nearly 2% on average.
- Financial and professional lines pricing increased more than 3% on average.
- Regionally, Australia once again had the largest pricing increases (based on last quarter’s Index).
- Among the other regions, average prices increased in the UK and Latin America; the US, Continental Europe, and Asia all reported slight price decreases.
- In America, CAT-exposed risks and large-layered programs all contributed to increases in property pricing – 4% to 5% increases, on average.
- Also in America, almost half of workers’ compensation and general liability programs saw pricing decreases – driven by reduced claims frequency and competitive pricing environment, respectively.