Risk Management

Global commercial lines pricing continues ascent in Q2: Marsh

Rob Lenihan

August 08, 2018 Reprints

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Global commercial lines pricing continues ascent in Q2: Marsh

Global commercial insurance prices rose, on average, for the third consecutive quarter, Marsh LLC said Wednesday.

The increases were driven largely by pricing for property lines that are still feeling 2017’s catastrophe losses and increases in financial and professional lines.

Marsh’s Global Insurance Market Index for the second quarter found that the market remained stable, Marsh said in a statement.

Average prices increased overall, driven primarily by the United Kingdom and Australia, Marsh said, while decreasing slightly in Continental Europe and Asia.

Financial and professional lines pricing continued to accelerate, Marsh said, up an average of 3.3%, largely due to directors and officers insurance pricing in several regions.

Casualty prices declined 1.4% on average, continuing a trend of year-over-year declines that dates back to 2013, the index said.

Insurance prices in the U.S. were flat in the second quarter of 2018, following more than three years of composite decreases. Average property rates increased 3%, the third consecutive quarter of low single-digit increases.

Catastrophe-exposed risks and large layered programs drove much of the property increase, with more than 50% of property clients posting a second-quarter price increase.

Average cyber insurance prices in the U.S. rose 2.1%, marking the third time in the last eight quarters that rates have increased. Marsh said this was partially due to expanded coverage and increased claims. Increased competition among insurers curbed price increases.

On Monday, insurance exchange Ivans Insurance Solutions reported that most average commercial insurance renewal premiums decreased by low single-digit percentages in July, except for commercial auto and umbrella.

In May, the Council of Insurance Agents & Brokers reported that pricing for commercial property/casualty lines increased slightly during the first quarter.