Global average commercial insurance prices increased by 19% in the second quarter of this year, according to broker Marsh. The broker said it was the largest increase since at least 2012 when it began tracking the figures. This follows year-on-year average increases of 14% in the first quarter and 11% in the previous quarter.

Property, financial and professional lines were thought to be the main drivers. Global property insurance was up 19% and global financial and professional lines were up a considerable 37%, while global casualty pricing was up 7%.

Composite pricing in the second quarter increased in all geographic regions for the seventh consecutive quarter, the broker said.

Driven largely by property and D&O, the US (18%), UK (31%), Continental Europe (15%), and APAC (31%) regions all had double-digit pricing increases.

Certain D&O markets saw especially large increases: US public company D&O prices were up 59% on average, with more than 90% of clients experiencing an increase. In the UK, D&O pricing increases average over 100%. A similar situation exists in Australia, where it says a lack of competition has resulted in capacity shortage.

Commenting on the findings, Dean Klisura, president of the firm's global placement division said: “While pricing movements this quarter were impacted by losses related to COVID-19, other large losses contributed to overall pricing pressures. As insurers continue to work through claims in property and D&O, and with the full cost of COVID-19 still developing, upward pressure on pricing is anticipated for the balance of 2020.”

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