Global commercial insurance prices rise during first quarter of 2019
It was, again, largely driven by property and directors and officers (D&O) lines of coverage.
Global commercial insurance prices rose by 3% on average in the first quarter of 2019, marking a sixth consecutive quarter of increases, according to the Marsh Global Insurance Market Index.
It was, again, largely driven by property and directors and officers (D&O) lines of coverage. Pricing for property risks increased 4.7%, a larger increase than in recent quarters. Property rates have increased globally every quarter since the catastrophe events in the fourth quarter of 2017. Financial and professional line pricing (primarily D&O) continued to accelerate, increasing 5.6%.
Overall, the market remained stable, with prices fluctuating within a relatively narrow range on average across most products and geographies.
Related: Global commercial insurance pricing increases in fourth quarter of 2018
Pricing by region
The commercial insurance market in certain regions excelled compared to others. Here are some key figures.
In the United States:
- Insurance pricing in the first quarter of 2019 in the U.S. increased by 1.1%.
- Large, multi-layered property programs (with gross written premiums greater than $1 million) led the pricing increases, up nearly 7%.
- Casualty pricing declined by 1.7% and has decreased in all but one quarter since 2014.
In the United Kingdom:
- Overall insurance pricing in the first quarter of 2019 in the U.K. increased by 2.9%, the sixth consecutive quarterly increase.
- Casualty pricing in the U.K. declined 2.7% overall, the fifth consecutive quarter of decline.
In continental Europe:
- Insurance pricing in the first quarter of 2019 in continental Europe increased by 2.0%, the region’s second consecutive quarter of price increases.
- Financial and professional coverage pricing increased 1.7%, the first back-to-back quarterly increases in five years.
- Casualty pricing declined 0.9% and has fallen in 22 of the last 24 quarters.
In Latin America:
- Overall insurance pricing in the first quarter in Latin America and the Caribbean region increased by 1.5%.
- Casualty prices increased by 3.6% and have increased every quarter for almost three years. This is primarily a result of motor/auto pricing that continues to be affected by claims frequency and severity, and by currency devaluations.
In the Pacific region:
- Overall insurance pricing in the first quarter of 2019 in the Pacific region increased by 16%.
- Casualty lines composite pricing increased by 5.7%.
- The financial and professional liability market continued to be difficult for listed company D&O risks. The number of class action claims increased again in 2018 and continued to affect pricing.
In Asia:
- Insurance pricing in the first quarter of 2019 increased by 0.4%, marking the seventh consecutive quarter of relatively minor pricing movements.
- Casualty pricing declined 0.4%, continuing a trend toward stable pricing following several years of moderate decreases.
- Financial and professional liability pricing was influenced by the deteriorating global market and carriers’ efforts to achieve pricing adequacy while reducing capacity.
The Marsh Global Insurance Market Index is a proprietary measure of commercial insurance premium pricing change at renewal. The pricing change captures year-over-year pricing movement, which is measured quarterly. A full report can be found on the company’s website.
Related: Upward pricing predicted for most lines of business in 2019