Commercial insurance pricing increases for first time since 2013

Insurance-Market-Price-Increases

Marsh’ released its Global Insurance Market Index for the fourth quarter of 2017. Highlights include:

Average global insurance pricing increased for the first time since Q1 2013, driven largely by global property insurance pricing, which was affected by large catastrophe losses in the third quarter.

  • Average pricing increased by 0.8% in the quarter, compared to a decrease of 1.9% in Q3 2017.
  • Globally, property insurance pricing increased 3.2%, compared to a 2.4% decrease in the previous quarter. Financial and professional lines pricing increased 0.1% in Q4, while casualty pricing declined by 1.5%.  In comparison, both financial and professional lines and casualty pricing decreased in Q3 by 1.4% and 1.7%, respectively. 
  • Regionally, average pricing increased in the UK, Latin America and Australia, which had its fourth consecutive quarter of pricing increases. Average pricing decreased in the US, Continental Europe, and Asia, albeit at slower rates than what was observed in Q3.
  • US cyber insurance pricing increased for the first time since Q4 2016.

Commenting on the findings, Dean Klisura, President, Global Placement and Specialties at Marsh, said: “Losses from Hurricanes Harvey, Irma, and Maria, and wildfires in California drove increases in property pricing in the US. Although property pricing generally increased, market capacity remains abundant. Pricing in all global regions showed either a moderate increase in the fourth quarter, or a slowing of the pace of decrease.”