Global Commercial Insurance Pricing up 6% in Second Quarter
New York | August 07, 2019
Today Marsh released its Global Insurance Market Index for the second quarter of 2019. Key findings include:
- Average commercial insurance pricing increased nearly 6% in second quarter 2019, the largest increase since the survey began in 2012, and the seventh consecutive quarter of average pricing increases.
- Globally, on average, pricing for property risks increased 8%; financial and professional lines rose almost 10%; and casualty increased nearly 1%. In general, pricing increases were more pronounced in large accounts, particularly in property and D&O.
- Composite pricing in the second quarter increased in all geographic regions for the third consecutive quarter, largely driven by rates in property and directors and officers (D&O) coverages.
- The Pacific region had the largest composite pricing increase in the index (18%), a quarterly trend that has continued for two years. Pacific composite pricing was driven by increases in D&O rates (many organizations experienced high double-digit increases), as well as increases in both CAT and non-CAT property.
- The US, UK and Asia all reported average pricing increases of 3% or higher.
Commenting on the findings, Dean Klisura, President, Global Placement at Marsh, said: “Global insurance pricing increased 6% in Q2 2019, double the rate observed in Q1. Although global pricing has now increased every quarter for nearly two years, market capacity remains stable in most products and geographies.”
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 $17 billion, Marsh McLennan 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.