New York, NY (Aug. 7, 2019) – 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.
Key findings include:
- 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.
Commenting on the findings, Dean Klisura, President, Global Placement at Marsh, said: “Global insurance pricing increased 6% in Q2 2019, double the rate observed in Q1. Although global pricing has now increased every quarter for nearly two years, market capacity remains stable in most products and geographies.”
Access the full report: Global Insurance Market Index, 2019 Q2.
About Marsh
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 75,000 colleagues worldwide, MMC helps clients navigate an increasingly dynamic and complex environment through four market-leading firms: Marsh, Guy Carpenter, Mercer, and Oliver Wyman.
Source: Marsh
Tags: commercial lines, insurance pricing, Marsh
