According to figures from Marsh, global commercial insurance prices rose by 6% in Q2 of 2019, almost double the increase witnessed in Q1. This represents the largest increase in the Marsh Global Insurance Market Index since its inception in 2012.
For the third consecutive quarter, composite pricing increased in all geographic regions and across most major product lines, said Marsh president of global placement Dean Klisura.
The highest average levels of increase were observed in property insurance, which was up 8% globally, and financial and professional liability lines, which increased nearly 10%. Casualty lines globally increased 1%, on average. In general, large accounts experienced greater pricing increases, particularly for property and D&O.
UK composite pricing rises for seventh consecutive quarter
Overall insurance pricing in the second quarter of 2019 in the UK rose by slightly more than 6%, the seventh straight quarter of pricing increases.
Property pricing in the UK increased 3.5%, with pricing for midsize companies generally more competitive than larger risks. The UK multinational market is in transition, with some insurers walking away from major renewals.
Casualty pricing in the UK declined 1% overall, the sixth consecutive quarter of decline. Rate reductions were generally available; however, insurers are becoming more demanding regarding terms and conditions. Motor liability continued to be more challenging, with pricing increasing consistently.
Financial and professional liability pricing in the UK increased 15%, driven by D&O increases on large accounts. There has been a market-wide deterioration in claims developments, negatively impacting pricing. A