Average commercial insurance prices increased by two percent in the fourth quarter of 2018, the fifth consecutive quarter of average increases.
Also, according to broker Marsh’s Global Insurance Market Index, composite pricing in Q4 increased in all global regions, the first time all regions have reported an increase in the same quarter.
Globally, pricing for property risks increased by almost four percent on average, slightly above the rates recorded in the previous three quarters. Casualty prices declined nearly one percent on average, continuing a trend started in 2013.
Average pricing in financial and professional lines increased across all global regions, most notably in Australia. The increases were primarily on directors and officers insurance.
Regionally, Pacific had the largest pricing increases in the index (>10 percent), a trend that has continued for seven quarters. The UK, Continental Europe, and Latin America all reported average pricing increases of at least one percent.
“Although the last quarter of 2018 saw average prices increase in all regions, the increases were generally modest,” commented Dean Klisura, president, Global Placement and Specialties at Marsh.
Klisura also said that while pricing for property and financial and professional lines have increased globally for five straight quarters, “market capacity remains strong in most geographies.”
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