US insurance price hikes steady; global increases slow
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Average insurance rate increases in the United States rose 3% in the first quarter, the same as in the fourth quarter, with property increases slowing, casualty rate hikes accelerating slightly, and financial and professional lines continuing to fall, according to Marsh LLC’s quarterly pricing index.
Globally, average rate increases slowed to 1% in the first quarter from 2% in the prior quarter, Marsh said.
In the U.S., property continued to see the biggest increase among major lines at 8%, but that was down from 11% in the fourth quarter. Casualty rates increased 4%, up from 3%, and financial and professional lines rates fell 5%, slightly less than the 6% decline in the prior quarter.
Within the financial and professional lines sector, directors and officers liability rates for public companies fell 8% in the first quarter, the same as in the fourth quarter, with rates stabilizing, especially for policyholders that had previously seen significant decreases, the report said.
Cyber liability rate decreases accelerated to 6% in the quarter, compared with 4% in the fourth quarter.
Elsewhere, average rates rose 5% in Latin America in the first quarter, down from 8% in the prior quarter; climbed 3% in Continental Europe, compared with 4%; declined 2% in Asia, compared with flat rates in the prior quarter; and fell 2% in both the United Kingdom and Canada, compared with 1% decreases.
