Global Commercial Insurance Pricing up 6% in Second Quarter

New York   |   August 07, 2019

Today Marsh released its Global Insurance Market Index for the second quarter of 2019. Key findings include:

• Average commercial insurance pricing increased nearly 6% in second quarter 2019, the largest increase since the survey began in 2012, and the seventh consecutive quarter of average pricing increases.
• Globally, on average, pricing for property risks increased 8%; financial and professional lines rose almost 10%; and casualty increased nearly 1%. In general, pricing increases were more pronounced in large accounts, particularly in property and D&O.
• Composite pricing in the second quarter increased in all geographic regions for the third consecutive quarter, largely driven by rates in property and directors and officers (D&O) coverages. 
• The Pacific region had the largest composite pricing increase in the index (18%), a quarterly trend that has continued for two years. Pacific composite pricing was driven by increases in D&O rates (many organizations experienced high double-digit increases), as well as increases in both CAT and non-CAT property. 
• The US, UK and Asia all reported average pricing increases of 3% or higher.

Commenting on the findings, Dean Klisura, President, Global Placement at Marsh, said: “Global insurance pricing increased 6% in Q2 2019, double the rate observed in Q1. Although global pricing has now increased every quarter for nearly two years, market capacity remains stable in most products and geographies.”

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Marsh is the world’s leading insurance broker and risk advisor. With around 40,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services. Marsh is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue over $17 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. Follow Marsh on Twitter @MarshGlobal; LinkedIn; Facebook; and YouTube, or subscribe to BRINK.