Commercial Insurance Pricing Increased in Fourth Quarter 2018
All Global Regions Record Increased Pricing
Global commercial insurance pricing increased for the fifth consecutive quarter in the fourth quarter of 2018, 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.
- Average commercial insurance prices increased by 2% in Q4 2018, the steepest increase since the survey began in 2012 and the fifth consecutive quarter of average increases.
- Composite pricing in Q4 increased in all global regions, the first time all regions have reported an increase in the same quarter.
- Regionally, Pacific had the largest pricing increases in the index (>10%), a trend that has continued for seven quarters. The UK, Continental Europe and Latin America all reported average pricing increases of at least 1%.
- Globally, pricing for property risks increased by almost 4% on average, slightly above the rates recorded in the previous three quarters. Casualty prices declined nearly 1% on average, continuing a trend started in 2013.
- Average pricing in financial and professional lines increased across all global regions, most notably in Australia. The increases were primarily on directors and officers insurance.