Marsh has released its Global Insurance Market Index for the third quarter of 2018.
Average commercial insurance prices increased by slightly more than 1% in the third quarter, driven by increases in property and financial and professional lines.
Average commercial insurance pricing has now increased four consecutive quarters.
While prices rose slightly, on average, the market remained stable. Prices during the quarter generally fluctuated within a relatively narrow range across most products and geographies.
Globally, pricing for property risks increased more than 3% on average, in line with the prior three quarters. Casualty prices declined nearly 2% on average, continuing a trend of year-over-year declines stretching back to 2013. Pricing for financial and professional lines continued to accelerate, increasing more than 3% on average for the second consecutive quarter.
Regionally, Australia again had the largest pricing increases in the index. Average prices also increased in the UK and Latin America. Prices decreased slightly in the US, Continental Europe, and Asia.
Commenting on the findings, Dean Klisura, President, Global Placement and Specialties at Marsh, said: “Average prices have increased moderately for four consecutive quarters as the marketplace continues to respond to several factors, including recent CAT events and increased claim activity on certain non-property coverages. However, market capacity remains strong in most product areas and geographies, limiting overall price increases.”