Insurance pricing rises for third quarter
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