Commercial insurance pricing increases for fifth consecutive quarter

Average commercial insurance prices increased by 2% in Q4 2018, according to figures released today by Marsh. Representing the steepest increase since the risk adviser began its index in 2012, it said composite pricing in Q4 increased in all global regions, with the pacific region seeing the biggest hike, of over 10% – a trend which has continued for seven quarters.

The UK, Continental Europe and Latin America all reported average pricing increases of at least 1%. Globally, pricing for property risks increased by almost 4% on average, slightly above the rates recorded in the previous three quarters.

Casualty prices declined nearly 1% on average, continuing a trend started in 2013. Average pricing in financial and professional lines increased across all global regions, most notably in Australia. The increases were primarily on directors and officers insurance.

Commenting on the findings, president of global placement and specialties at Marsh, Dean Klisura said: “Although the last quarter of 2018 saw average prices increase in all regions, the increases were generally modest. While pricing for property and financial and professional lines have increased globally for five straight quarters, market capacity remains strong in most geographies.”

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