Global Commercial insurance pricing up 14% in Q1 2020

18 May 2020 — Andrei Victor
Global insurance broker MARSH released last week the Global Insurance Market Index for the first quarter of 2020. The increase, the largest since the index was launched in 2012, comes despite the minimal impact of the COVID-19 global pandemic on pricing in the quarter.

Average price increases were driven principally by increases in property insurance and financial and professional lines. Among other findings, the survey noted:

  • The first quarter of 2020 was the tenth consecutive quarter of average price increases.
  • Globally, pricing for property risks increased 15%; financial and professional lines rose nearly 26%; and casualty increased 5%.
  • Composite pricing in the first quarter increased in all geographic regions for the sixth consecutive quarter.
  • The US (14%), UK (21%), and Pacific (23%) regions all experienced double-digit pricing increases. As well as increases in property pricing, much of the increase, was driven by increases in financial and professional lines, and directors and officers (D&O) rates in particular.

Commenting on the findings, Dean KLISURA, President, Global Placement and Advisory Services at MARSH, said:

"Pricing was trending higher in the first quarter, prior to any meaningful impact from losses associated with COVID-19. We do expect, however, that COVID-19 will have a meaningful impact on pricing for the balance of 2020."

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