Global Insurance Market Index- 2020 Q1
Global Commercial Insurance Pricing Up 14% in First Quarter
Global commercial insurance pricing increased for the tenth consecutive quarter in the first quarter of 2020, 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.
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.
Property insurance pricing increased 23% in the quarter, the tenth consecutive quarter of year-on-year double-digit increases. Property increases were driven by bushfires, hailstorm damage, and flooding December and January.
Double-digit increases were also reported for CAT and non-CAT risks in both Australia and New Zealand – pricing increases exceeded 30% for many clients.
Financial and professional liability pricing rose more than 30% in the quarter, marking 11 straight quarters of double-digit increases. This comes as conditions remained consistent with prior quarters. Side C-exposed listed companies experienced the largest increase, on some occasions greater than 100%.
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.
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