MARSH: Global commercial insurance pricing up for the third consecutive quarter in Q2 2018

20 August 2018 — Daniela GHETU
Global commercial insurance pricing increased for the third consecutive quarter in Q2 2018, largely driven by insurance pricing for property lines, which continued to be affected by 2017 catastrophe losses, and by increases in financial and professional lines, the latest data published by Marsh show.

Marsh's quarterly Global Insurance Market Index is a proprietary measure of global commercial insurance premium pricing change at renewal, representing the world's major insurance markets and comprising 90% of Marsh's premium.

Overall, the market remained stable with Q2 price changes within a relatively narrow range across most product lines and geographies. Yet, prices trended up in most regions with Australia averaging the largest increase, while prices decreased slightly in Continental Europe and Asia.

Prices for property and financial and professional lines saw, on average, an ascendant trend in Q2. For example, the pricing for property risks increased by 2.3% on average, maintaining the trend established following the Cat events of 2017, although in comparison with the previous two quarters, the growth rate flattened.

Financial and professional line pricing continued to accelerate, increasing by 3.3% on average, with much of the increase due to directors and officers (D&O) insurance pricing in multiple regions. Casualty prices declined 1.4% on average, continuing a trend of y-o-y declines stretching back to 2013. Australia had the largest pricing increases in the index.

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