Preparing and responding to the Novel Coronavirus outbreak
New York, NY (May 11, 2020) – Marsh has released its Global Insurance Market Index for the first quarter of 2020. The increase, the largest since the index was launched in 2012, comes despite the minimal impact of the COVID-19 global pandemic on pricing in the quarter.
Average price increases were driven principally by increases in property insurance and financial and professional lines. Among other findings, the survey noted:
- The first quarter of 2020 was the tenth consecutive quarter of average price increases.
- Globally, pricing for property risks increased 15%; financial and professional lines rose nearly 26%; and casualty increased 5%.
- Composite pricing in the first quarter increased in all geographic regions for the sixth consecutive quarter.
- The US (14%), UK (21%), and Pacific (23%) regions all experienced double-digit pricing increases. As well as increases in property pricing, much of the increase, was driven by increases in financial and professional lines, and directors and officers (D&O) rates in particular.
Commenting on the findings, Dean Klisura, President, Global Placement and Advisory Services at Marsh, said: “Pricing was trending higher in the first quarter, prior to any meaningful impact from losses associated with COVID-19. We do expect, however, that COVID-19 will have a meaningful impact on pricing for the balance of 2020”.
Marsh is the world’s leading insurance broker and risk adviser. With more than 35,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With annual revenue of more than US$15 billion and 76,000 colleagues worldwide, MMC helps clients navigate an increasingly dynamic and complex environment through four market-leading firms: Marsh, Guy Carpenter, Mercer, and Oliver Wyman. To learn more, subscribe to BRINK.
Source: MarshTags: commercial lines, coronavirus, epidemic, insurance pricing, Marsh