Marsh has a new report out. It says the average price of commercial insurance — globally — jumped 14% in the first quarter of 2020. That is the biggest increase ever seen in Marsh’s Global Insurance Market Index.
The index has been published every quarter since 2012.
Marsh says the commercial price uptick is being driven by hikes in property, financial and professional lines, and directors and officers rates. Prices rose in the U.S. by 14%. The United Kingdom saw a jump of 21% and the Pacific nations experienced rate jumps of 23%.
Dean Klisura, president of Marsh’s Global Placement and Advisory Services said the U.S. D&O market saw rate hikes of 44%.
“Pricing was trending higher in the first quarter, prior to any meaningful impact from losses associated with COVID-19,” Klisura said. “However, COVID-19 will likely have an impact on pricing for the balance of 2020.”
Here are other findings in the survey:
* It is the 10th consecutive quarter of price increases
* Globally pricing for property rose 15%
* Globally financial and professional lines were up 26%
* Globally casualty jumped 5%
Ivans Insurance Solutions — a division of Applied Systems — issued a report last week on April’s commercial rates. They rose significantly and workers’ compensation rates continued to plummet.
* Commercial property rose highest with 5.51% renewal rates
* Commercial property rates in March were 5.28%
* BOP policies rose 5.22% in April compared to 4.85% in March
* Commercial auto is up 4.8% from 4.75%
* General liability rose 3.29% up from 3.18%
* Umbrella rates are up 3.18% a bit lower than 3.22% in March
Workers’ compensation continues to falter. Rates fell 2.06% in April compared to a fall of only 1.96% in March.
Source links: Business Insurance, Business Insurance America