Global Commercial Insurance Pricing Up 6% in Second Quarter: Marsh

Source: Marsh | Published on August 8, 2019

July Property cat rates

Global commercial insurance pricing increased for the seventh consecutive quarter in the second quarter of 2019, according to Marsh’s quarterly Global Insurance Market Index, a proprietary measure of global commercial insurance premium pricing change at renewal, representing the world’s major insurance markets and comprising nearly 90% of Marsh’s premium.

Average commercial insurance pricing increased nearly 6% in second quarter 2019, the largest increase since the survey began in 2012, and the seventh consecutive quarter of average pricing increases.

Globally, on average, pricing for property risks increased 8%; financial and professional lines rose almost 10%; and casualty increased nearly 1%. In general, pricing increases were more pronounced in large accounts, particularly in property and D&O.

Composite pricing in the second quarter increased in all geographic regions for the third consecutive quarter, largely driven by rates in property and directors and officers (D&O) coverages.

The Pacific region had the largest composite pricing increase in the index (18%), a quarterly trend that has continued for two years. Pacific composite pricing was driven by increases in D&O rates (many organizations experienced high double-digit increases), as well as increases in both CAT and non-CAT property.

The US, UK and Asia all reported average pricing increases of 3% or higher.