Commercial insurance rates keep rising
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Global commercial insurance pricing increased for most lines of coverage in the third quarter, according to Marsh LLC, marking the longest run of consecutive quarterly rate hikes since the brokerage began publishing its global insurance market index in 2012.
Composite rates rose 3% globally and 4% in the United States, Marsh said in its pricing report released Wednesday.
U.S. property rates jumped 14%, but that was down from a 19% increase in the second quarter. Casualty rates rose 2%, compared with 3% in the second quarter.
Buyers did see some continued relief in financial and professional lines where rates fell 6% in the third quarter, though the pace of decreases slowed from the average 10% rate cuts in the second quarter.
Cyber liability rates fell 6% in the third quarter, compared with a 4% drop in the prior quarter, as more managing general agents entered the cyber market, Marsh said.
“Improvements in cybersecurity controls have led to a higher proportion of insureds not paying ransoms; however, they may still incur breach response expenses and business income losses to which cyber policies respond,” the report said.
In the United Kingdom property rates rose 2%, compared with 4% in the prior quarter; casualty rates edged up 1%, compared with 2%; and financial and professional lines dropped 9%, compared with a 6% decline.
In Continental Europe, property was up 7%, compared with 8%; casualty rose 5%, compared with 4%; and financial and professional lines fell 4%, compared with a 2% drop.
In Asia, property rates again rose 2%; casualty rates fell 2%, compared with a 3% decline; and financial and professional lines fell 3%, compared with a 5% drop.
