Commercial Insurance Pricing Increases in 2019 Q1
Global commercial insurance pricing increased by 3% on average in the first quarter of 2019, according to Marsh’s Global Insurance Market Index. The report evaluates commercial insurance premium pricing change at renewal, capturing year-over-year pricing movement, measured quarterly.
According to the report, the increase was largely influenced by property and directors and officers (D&O) lines of coverage. Pricing for global property risks increased by 4.7%, following an upward trend of rates that have increased each quarter since the fourth quarter of 2017.
In the United States, pricing increased for the second straight quarter, at 1.1%. Property increased 4%, and large, multi-layered property programs with gross written premium greater than $1 million showed the most growth, up by almost 7%. Due to pricing in D&O liability, financial and professional liability insurance rates in the US increased by 2.8%.
Overall, the global increase marks the sixth consecutive quarter of growth. For the past two quarters, composite pricing increases were observed in all regions.