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.
- Globally, pricing for property risks increased 15% versus 25% in Hong Kong; globally financial and professional lines rose 26% versus 8% in Hong Kong; and globally casualty increased 5% versus 2% in Hong Kong.
- In Hong Kong, political violence insurance pricing has increased by 54% as a result of the demonstrations.
- 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.
- Acceleration in pricing increases both in Hong Kong/Macau and globally are attributed to poor insurer results, need for price adequacy driven by cost of capital and reinsurance costs as well as global uncertainty as it relates to direct losses and investment losses caused by Covid-19.
- For property and political violence insurance, Hong Kong is experiencing higher rate increases because of local concerns over the demonstrations and exposure to typhoon risk. In addition, rate adequacy in Hong Kong has been historically low following years of a soft market cycle.
- For casualty and financial lines business, Hong Kong is experiencing lower rate increases because of better loss experience and less exposure to litigation and class action lawsuits.
- As well as premium rates, insurers are assessing deductibles and coverage.
Use the mouse wheel to zoom in and out; use mouse drag to pan to a specific period of time.