Commercial insurance prices up 14% globally – Marsh

Global average commercial insurance prices spiked 14% in the first quarter, according to a new report by Marsh. The increase – the largest since Marsh’s Global Insurance Market Index was launched in 2012 - comes despite the minimal impact of the COVID-19 pandemic on pricing in the quarter.

Average price increases were driven largely by increases in property insurance and financial and professional lines, according to Marsh. Some key findings of the survey included:

• Q1 marked the 10th consecutive quarter of average price increases.
• Globally, on average, pricing for property risks rose 15%; financial and professional lines were up nearly 26%; and casualty rose 5%.
• Composite pricing in the first quarter was up in all geographic regions for the sixth straight quarter.

The US (14%), UK (21%) and Pacific (23%) regions all posted double-digit pricing increases, driven largely by increases in property, financial and professional lines, and directors and officers rates in particular. In the US, pricing in the D&O market rose 44%, Marsh found

“Pricing was trending higher in the first quarter, prior to any meaningful impact from losses associated with COVID-19,” said Dean Klisura, president of Global Placement and Advisory Services at Marsh. “However, COVID-19 will likely have an impact on pricing for the balance of 2020.”