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Global commercial insurance prices increased 15% in the second quarter of 2021, according to the Global Insurance Market Index released today by Marsh, the world’s leading insurance broker and risk advisor. It’s the 15th consecutive quarter of rate increases in the global commercial insurance market. It also marks the third consecutive quarter to show a fall in the average rate of increase and follows year-on-year average increases of 18% in the first quarter and 22% in the fourth quarter of 2020.
Increases across all geographies moderated due to slower rate rises in property insurance, except Europe, and financial and professional lines, except Asia and Latin America and the Caribbean (LAC). The UK, with a composite pricing increase of 28% (down from 35% in Q1 2021) and the Pacific region, with a 23% increase (down from 29% in Q1 2021) continued to drive the global composite rate. The rate of increase in the US was 12% (down from 14%), in Asia 6% (down from 8%), in LAC 4% (down from 5%), and in Continental Europe 13% (down from 15%).
Among other findings, the survey noted:
In line with other regions, pricing in Asia continues to be driven by property insurance and financial and professional lines.
Commenting on the report, Lucy Clarke, President, Marsh Specialty and Marsh Global Placement, said: “Clients continue to face a challenging risk and insurance landscape as the global economy emerges from the pandemic. Although we expect continued pressure on pricing, especially in loss affected lines, we also expect the general trend of moderating price increases to continue through the rest of the year.”
Marsh is the world’s leading insurance broker and risk advisor. With around 40,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services. Marsh is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue over $18 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. For more information, visit mmc.com, follow us on LinkedIn and Twitter or subscribe to BRINK.