Commercial insurance pricing increased for the fifth straight quarter in Q4, according to a new report from Marsh.
Average commercial insurance prices were up by 2% in the fourth quarter, according to Marsh’s Global Insurance Market Index. That’s the sharpest increase since the survey began and the fifth straight quarterly average increase. Composite pricing rose in all global regions in the fourth quarter – the first time all regions reported an increase within the same quarter.
The Pacific region saw the largest price increases, with price hikes over 10%. The UK, Continental Europe and Latin America all reported average pricing increases of at least 1%, Marsh reported.
Globally, property-risk pricing increased by an average of almost 4%. Casualty prices fell by almost 1% on average. Average pricing on financial and professional lines increased in all global regions, most notably in Australia. The price increases in that segment were driven largely by directors and officers insurance.
“Although the last quarter of 2018 saw average prices increase in all regions, the increases were generally modest,” said Dean Klisura, president of global placement and specialties at Marsh. “While pricing for property and financial and professional lines have increased globally for five straight quarters, market capacity remains strong in most geographies.”