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Global commercial insurance prices rise: Marsh

Global commercial insurance prices rise: Marsh

Global commercial insurance prices rose on average for the second consecutive quarter after four and a half years of price decreases, according to the Global Insurance Market Index from Marsh L.L.C., released Thursday.

The change in trajectory was largely driven by property insurance pricing, which continued to be affected by 2017 catastrophe losses and increases in financial and professional lines.

Overall, the market remained stable in the first quarter with prices increasing on average by nearly 1%.

Pricing for property risks increased 2.7% on average in the first quarter, after increasing 3.2% in the prior quarter, according to the report.

Catastrophe losses from 2017 “continue to impact pricing, although there is variability by geography and risk class,” the report said.

Financial and professional line pricing saw a 1.8% average increase, driven by increases in the U.K., Latin America and Australia.

Casualty prices declined 1.7% on average, continuing a trend of year-over-year declines beginning in 2013.

Average U.S. property prices increased 2.9% in the first quarter compared with 3.6% in the previous quarter, “largely driven by natural disasters in the second half of 2017,” the report said, adding that both catastrophe and non-catastrophe property pricing in the U.S. showed an increase in the first quarter.

Property increases in the U.S. were somewhat offset by continued declines in casualty lines due to significant competition in the casualty marketplace, the report said.

Most regions showed either a moderate increase in pricing in the first quarter, or a lessening of the pace of decrease, the report said.

One exception was Asia, which had a greater decrease compared with the previous quarter, according to a statement released with the report.

“The impact of catastrophe losses last year continued to impact property insurance prices in the U.S. and elsewhere,” Dean Klisura, president of global placement and specialties at Marsh, said in the statement. “However, overall market capacity remains strong with pricing decreases continuing in many regions for lines of business less affected by losses.”







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