Commercial Insurance Pricing Increased for Fourth Consecutive Quarter in Q3 2018
New York | November 21, 2018
Marsh today released its Global Insurance Market Index for the third quarter of 2018. Highlights include:
- Average commercial insurance prices increased by slightly more than 1% in the third quarter, driven by increases in property and financial and professional lines.
- Average commercial insurance pricing has now increased four consecutive quarters.
- While prices rose slightly, on average, the market remained stable. Prices during the quarter generally fluctuated within a relatively narrow range across most products and geographies.
- Globally, pricing for property risks increased more than 3% on average, in line with the prior three quarters. Casualty prices declined nearly 2% on average, continuing a trend of year-over-year declines stretching back to 2013. Pricing for financial and professional lines continued to accelerate, increasing more than 3% on average for the second consecutive quarter.
- Regionally, Australia again had the largest pricing increases in the index. Average prices also increased in the UK and Latin America. Prices decreased slightly in the US, Continental Europe, and Asia.
Commenting on the findings, Dean Klisura, President, Global Placement and Specialties at Marsh, said: “Average prices have increased moderately for four consecutive quarters as the marketplace continues to respond to several factors, including recent CAT events and increased claim activity on certain non-property coverages. However, market capacity remains strong in most product areas and geographies, limiting overall price increases.”
Marsh is the world’s leading insurance broker and risk adviser. With over 35,000 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 Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With annual revenue approaching US$17 billion and 76,000 colleagues worldwide, MMC helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer, and Oliver Wyman. Follow Marsh on Twitter @MarshGlobal; LinkedIn; Facebook; and YouTube, or subscribe to BRINK.