August 26, 2020
(New York NY, Economic & Insurance News by Insurance Market 360 – www.insurancemarket360.com) – For the eleventh quarter in a row, the global commercial insurance pricing increased in the second quarter of this year, Marsh’s quarterly Global Insurance Market Index revealed. The Global Market Index measures the change of global commercial insurance premium pricing at renewal. It represents the world’s major insurance markets and comprising nearly 90% of Marsh’s premium.
The 19% increase is the largest since 2012, when the index launched. As with the first quarter, average price increases were driven by increases in property insurance rates and financial and professional lines. Highlights of the report reveal these things:
Global property insurance increased 19%. Global financial and professional lines increased 37%. Global casualty pricing increased 7% on average. Composite pricing in the second quarter increased for the seventh consecutive quarter.
Several regions had double-digit pricing increases. The U.S. saw an increase of 18%; the UK saw an increase of 31%; Continental Europe had a 15% increase. The Pacific region saw a 31% increase too. Pricing increases in these regions were largely driven by increases in property and directors and officers (D&O) coverages.
D&O prices for US public companies increased 59% on average. In the United Kingdom, D&O pricing increases were, on average, more than 100%.
Source: Marsh Inc.