Average commercial insurance prices increased by slightly more than 1% in the third quarter, driven by increases in property and financial and professional lines. (Image: iStock)

Global commercial insurance pricing increased for the fourth consecutive quarter in the third quarter of 2018, according to Marsh's quarterly Global Insurance Market Index.

CAT events, increased claims on non-property coverage

“Average prices have increased moderately for four consecutive quarters as the marketplace continues to respond to several factors, including recent CAT events and increased claim activity on certain non-property coverages,” according to Dean Klisura, president, Global Placement and Specialties at Marsh. “However, market capacity remains strong in most product areas and geographies, limiting overall price increases.”

Highlights in the Q3 2018 report include:

• Average commercial insurance prices increased by slightly more than 1% in the third quarter, driven by increases in property and financial and professional lines.
• Average commercial insurance pricing has now increased four consecutive quarters.
• While prices rose slightly, on average, the market remained stable. Prices during the quarter generally fluctuated within a relatively narrow range across most products and geographies.
• Globally, pricing for property risks increased more than 3% on average, in line with the prior three quarters. Casualty prices declined nearly 2% on average, continuing a trend of year-over-year declines stretching back to 2013. Pricing for financial and professional lines continued to accelerate, increasing more than 3% on average for the second consecutive quarter.
• Regionally, Australia again had the largest pricing increases in the index. Average prices also increased in the UK and Latin America. Prices decreased slightly in the U.S., Continental Europe, and Asia.

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