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REPORT

Global Insurance Market Index - 2020 Q2

Overall insurance pricing in the second quarter of 2020 in the Pacific region increased 31%, continuing an upward trend that began in 2015.

Property insurance pricing increased 28% in the quarter, the eleventh consecutive quarter of year-over-year double-digit increases.

  •  Wildfires and other CAT events drove the pricing increase, with concerns surrounding COVID-19 also having an impact.
  • Policy wordings and coverage edits occurred frequently as a means to offset or mitigate pricing increases, adjustments to deductibles, and/or SIR increases.
  • There was little competition among insurers, and a general move toward reducing line sizes (deployed capacity) on major placements, in particular those with CAT exposure.

Casualty pricing rose 9%.

  • Casualty pricing continued to increase in the mid-single digits as it has for three years.
  • Wildfire, construction risks, and clients with US exposures faced significant increases, ranging from 30% to 50% and above, as well as reduced capacity.
  • Competition and capacity in the casualty market began to increase.

Financial and professional liability pricing rose 48% in the quarter, marking 12 consecutive quarters of double-digit increases.

  •  Many listed companies’ D&O programs experienced increases above 100%.
  • There were numerous edits to policy wordings to mitigate pricing impacts, with material changes to deal structure.
  • It was difficult to fill the capacity desired on select programs.
  • Commercial professional indemnity increases ranged from 20% to 25%. 

Global Insurance Market Index - Q2 2020

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“Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”