Read the full report here: Global Insurance Market Index 2019 Q3 (PDF 0.3 MB)
The 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 nearly 90% of Marsh's premium.
The third quarter of 2019 growth(+7.8%) was the largest y-o-y increase in the Marsh Global Insurance Market Index since its inception in 2012, keeping the upward trend which started at the end of 4Q2017. At global level, on average, pricing for property risks increased by 10.2%, financial and professional lines rose by nearly 14.2%, while casualty increased by 0.8%.
"Composite pricing in the third quarter increased in all geographic regions for the fourth consecutive quarter, largely driven by rates in directors and officers (D&O) coverage and property," Marsh mentioned in the report. Per each region, the composite insurance pricing change at 3Q2019 was as follows:
- US: +6.4%
- UK: +11.8%
- Continental Europe: +4.2%
- Latin America: +4.6%
- Asia: +5.1%
- Pacific: +18.8%
Pacific index recorded the highest increase y-o-y in Q3 (+18.8%). Marsh explained that Pacific composite pricing "was driven by increases in D&O rates, as well as increases in property rates". Continental Europe recorded the lowest increase in commercial insurance prices (+4.2%) compared to all the other areas included by Marsh.
"Insurance pricing in the third quarter of 2019 in Continental Europe (CE) increased by more than 4%, driven primarily by property insurance," Marsh mentioned.
- "Pricing for CAT risks increased in most major countries, generally in the low to mid single digits.
- Non-CAT property pricing showed some variability across the region. Most major markets showed slight increases; smaller countries typically reported stable pricing.
- Property pricing increases were largely the result of a slight reduction in overall capacity and carriers tightening conditions."
- "The auto/motor line was the only casualty product to show consistent increases across the region, generally in the low single-digits;
- General liability insurance showed variability across the region, but was generally stable;
- Workers' compensation/employer's liability pricing varied within a narrow band, from stable to down low single digits."
- "Increases were driven largely by D&O pricing and financial institution accounts."