Global commercial insurance price hikes extend record run: Marsh
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Global commercial insurance pricing increased for many lines of coverage in the fourth quarter, according to Marsh LLC, extending the longest run of rate hikes since its global insurance index debuted in 2012.
Global composite rates rose 2%, down from 3% in the prior two quarters, while in the U.S. rates were up 3%, Marsh said in its pricing report released Monday.
It was the 25th consecutive quarter of rate increases, the brokerage said.
U.S. property rates were up 11%, but that was down from a 14% rate increase in the third quarter, Marsh said. Property rates increased in every global region except the Pacific where they were flat.
U.S. casualty rates rose 3%, up from 2% in the third quarter, and by 5% excluding workers compensation. Globally, insurers remain concerned about social inflation and continued large jury awards, Marsh said.
Financial and professional lines buyers continued to see some rate relief as rates again decreased 6% in the U.S. Rates declined in every global region, Marsh said.
Cyber liability rates in the U.S. declined 4%, compared with a 6% drop in the third quarter. Ransomware attacks increased in frequency, sophistication and severity, and evolving privacy regulations also led to increased claims in the fourth quarter, Marsh said.
Cybersecurity controls continue to be a focus, with insurers looking for improvements year over year, the brokerage said.
In the United Kingdom, property rates edged up 1%, compared with 2% in the third quarter; casualty rose 2%, compared with 1%; and financial and professional lines fell 6%, compared with a 9% drop.
In Europe, property again rose 7%; casualty climbed 6%, compared with 5%; and financial and professional lines dropped 7%, compared with a 4% decline.
In Asia, property again rose 2%; casualty rates again declined 2%; financial and professional lines dropped 6%, compared with 3%.
