Global commercial insurance pricing was up 6% in the second quarter, according to new data from Marsh. Q2 marked the seventh consecutive quarter of price increases, while the 6% jump was the largest increase since Marsh’s Global Insurance Market Index survey began in 2012.
Globally, pricing for property risks increased by 8%. Financial and professional lines saw an average 10% jump, and casualty increased 1%, according to Marsh. Price increases were generally more pronounced in large accounts, particularly in property and directors’ and officers’ liability.
Composite pricing increased in all geographic regions for the third straight quarter, driven in large part by rates in property and D&O coverage. The Pacific region saw the largest composite pricing increase at 18%. Pacific composite pricing was driven by hikes in D&O rates, with many organizations seeing double-digit increases, and by increases in both CAT and non-CAT property, Marsh said.
The US, the UK and Asia all reported average pricing increases of 3% or more.
“Global insurance pricing increased 6% in Q2 2019, double the rate observed in Q1,” said Dean Klisura, president of global placement at Marsh. “Although global pricing has now increased every quarter for nearly two years, market capacity remains stable in most products and geographies.”