Broker Marsh has issued its Global Insurance Market Index for the third quarter of 2019 which found pricing was up by 8% in the past three months.
The study found average commercial insurance pricing increased 8% in the third quarter of 2019, the largest increase since the survey began in 2012, and the eighth consecutive quarter of average price increases.
Globally, on average, pricing for property risks increased by 10%; financial and professional lines rose by nearly 14%; and casualty increased by 1%. The US, UK, and Asia all reported average pricing increases of 5% or higher.
Commenting on the findings, Dean Klisura, President, Global Placement at Marsh, said: “Global insurance pricing increased 8% in Q3 2019, as the market continues to firm in most regions. Global pricing has now increased every quarter for nearly two years, and market capacity is starting to show signs of tightening in certain geographies and lines of business.”
Composite pricing in the third quarter increased in all geographic regions for the fourth consecutive quarter, largely driven by rates in directors and officers (D&O) coverage and property.
For the fourth consecutive quarter, all regions reported composite pricing increases. The Pacific region had the largest composite pricing increase in the index (19%), a quarterly trend that has continued for almost three years. Pacific composite pricing was driven by increases in D&O rates, as well as increases in property rates.