According to Marsh’s quarterly Global Insurance Market Index, global commercial insurance pricing increased for the sixth consecutive quarter in the first quarter of 2019. This marks the sixth consecutive quarter of increases, with composite pricing increasing in all global regions for the second quarter in a row.
Average commercial insurance prices increased 3% in Q12019, the largest increase since the survey began in 2012. The rise in composite pricing was driven by rate change in property and directors and officers (D&O) coverages.
Regionally, Asia Pacific had the largest price increases in the index (>10%), a trend that has continued for eight quarters. The UK and continental Europe both reported average price increases of 2% or higher.
Globally, pricing for property risks increased by almost 5% on average, slightly above the rates recorded in the previous four quarters. Casualty prices declined nearly 1% on average, continuing a trend started in 2013.
Average pricing in financial and professional lines increased by almost 6%. All global regions experienced a rise, primarily driven by increases in D&O insurance. Overall, the insurance market remained stable, with prices increasing or decreasing within a relatively narrow band across most products and regions.
Average pricing changes in the major product lines include a 4.7% bump in property insurance, a 5.6% increase in financial and professional liability and a 0.7% decrease in casualty pricing.
UK composite pricing rises for sixth consecutive quarter
Overall insurance pricing in the first quarter of 2019 in the UK rose by 2.9%, the sixth straight quarter of increases. Property pricing in the UK increased 3%, with large clients typically experiencing higher rates of increase than did small-to-midsize firms.
Casualty pricing in the UK declined 2.7% overall for the fifth consecutive quarter. There was some evidence of insurers starting to hold firm on pricing and/or tighten terms.
Financial and professional liability pricing in the UK increased by 6.7%, driven by D&O increases on clients with US and/or Australian exposed or listed risks. For clients with a US or Australia listing, D&O increases were generally between 20% and 30%. A