Marsh — like many insurers, ratings agencies and others — tracks commercial insurance prices. The company’s Global Market Index for the first quarter of 2019 has good news for commercial insurers. Prices rose by 3% overall.
Dean Klisura is Marsh’s president of global placement. He said, “While 3% is the largest average increase in insurance pricing we have seen since the index began in 2012, market capacity remains strong in most products and geographies.”
Going back to 2013, Klisura said prices have fallen 0.7% worldwide. That seems to have turned around.
In the U.S. — where most of us are concerned — first quarter rates leaped 1.1%. That’s good news. The news on another front is not so good. Casualty pricing — which has fallen in all but one quarter since 2014 — fell again and dropped another 1.7%.
Here’s the rest of the report’s highlights:
• All regions experienced increases and they’re driven mostly by changes in D&O rates
• The Pacific region saw the most increases at greater than 10%. That has been a trend for the last eight quarters
• Europe and the United Kingdom saw jumps of 2% or higher
• Property risk prices around the globe jumped an average of almost 5%
• Casualty prices fell an average of 1%
• Pricing for financial and professional lines rose close to 6%
As for the U.S. Marsh said the increases are at the highest rate since 2013. Here’s more:
• Property saw a 4% increase and has now gone up each quarter since 2017
• Multilayered property programs led the way with increases of close to 7%
• Financial and professional liability rose 2.8% and — again — is driven by D&O liability jumps
• D&O pricing for public companies rose about 6% and 77% of clients saw an increase
• That is the largest number in several years
Source link: Insurance Journal