Insurance pricing rises for third quarter

  • Trending up: global insurance pricing has increased for a third consecutive quarter according to data from the Marsh Global Insurance Market Index (Graph by Scott Neil)

    Trending up: global insurance pricing has increased for a third consecutive quarter according to data from the Marsh Global Insurance Market Index (Graph by Scott Neil)


Global commercial insurance prices have risen for a third consecutive quarter, according to figures in the Marsh Global Insurance Market Index.

There was a 1.2 per cent improvement in global insurance composite pricing during the second quarter of this year.

Dan Klisura, president of global placement and specialities for Marsh, said the increase was driven largely by pricing for property and financial and professional insurance lines.

Directors and officers liability coverage for public companies in the US increased for about 30 per cent of firms. This was attributed to poor underwriting results that, according to Fitch Ratings, were the worst since 2011. Among emerging risks areas for D&O exposures were cyber-risks and employment practices.

Financial and professional lines pricing was on average up 3.3 per cent, outpacing global property pricing, which was up 2.3 per cent. Last year’s catastrophe events continue to impact pricing with increases in claim notices and indemnity costs for carriers.

Australia saw property risk pricing rise by 12 per cent. “There is evidence of reduced capacity as some carriers have begun to adjust their underwriting appetite,” Mr Klisura noted.

The latest data also showed that cyber insurance prices in the US increased by 2.1 per cent.

“The increase was driven by a minority of clients; however, many of these clients received double-digit price hikes as risk exposures increased or they bought higher limits. US cyber continues to be an evolving market, with increased competition among insurers in all revenue segments and industries, partially offsetting clients’ increased demand for the product,” wrote Mr Klisura.

In continental Europe, competition was a factor in driving down pricing by 1.5 per cent. There were pricing declines in the UK, Asia and Latin America. Catastrophe-exposed risks generally saw pricing increases of several percentage points higher than non-catastrophe risks.

The report can be read at https://tinyurl.com/ybppstg5

You must be registered or signed-in to post comment or to vote.

Published Aug 16, 2018 at 8:00 am (Updated Aug 15, 2018 at 11:33 pm)

Insurance pricing rises for third quarter

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    Today's Obituaries

    eMoo Posts