Average commercial insurance prices rose by just over 1% over the third quarter of 2018, marking the fourth consecutive quarter of pricing increases for the sector, according to the latest Global Insurance Market Index by re/insurance broker Marsh.
The pricing trend has largely been driven by increases in property and financial and professional lines, although the market has remained stable on average, Marsh noted, with prices fluctuating within a relatively narrow range across most products and geographies.
Pricing for property risks increased by more than 3% on average at Q3 2018, in line with the prior three quarters, the Market Index shows, while financial and professional lines pricing continued to accelerate, increasing by more than 3% on average for the second consecutive quarter.
In contrast, casualty pricing declined by nearly 2% on average over Q3, continuing a negative trend that began in 2013.
Marsh found that Australia experienced the largest pricing increases in the index, although average prices also increased notably in the UK and Latin America.
Meanwhile, in the U.S, Continental Europe and Asia, the Market Index revealed that prices decreased slightly on average.
“Average prices have increased moderately for four consecutive quarters as the marketplace continues to respond to several factors, including recent CAT events and increased claim activity on certain non-property coverages,” said Dean Klisura, President, Global Placement and Specialties at Marsh.
“However,” Klisura added, “market capacity remains strong in most product areas and geographies, limiting overall price increases.”