Global commercial insurance prices rose 22% in the fourth quarter of 2020, the thirteenth consecutive quarter of price increases. The fourth quarter rise in pricing was the largest year-over-year increase in the Marsh Global Insurance Market Index since its inception in 2012.
Geographically, the UK, with a composite pricing increase of 44%, and the Pacific region, with a 35% increase, drove the global composite rate. Average composite pricing increased in all regions for the ninth consecutive quarter.
Pricing increases may be starting to plateau for certain insurance products in certain geographies — for example, directors and officers (D&O) and property in the US — due in part to new capacity entering the market. Continental Europe, Asia, and Latin America and Caribbean (LAC) have now had moderate levels of pricing increase for three quarters, suggesting that price hikes are slowing in these regions.
In the below video, John Donnelly, Marsh’s Head of Global Placement Asia and Pacific, provides a snapshot on the Pacific region’s pricing movements and key drivers, as well as some top tips for companies who are approaching renewals in the current market.
Overall insurance pricing in the fourth quarter of 2020 in the Pacific region increased 35%, continuing an upward trend that began in 2015.