Global average commercial insurance prices increased by 11% in the fourth quarter of 2019, according to data released by re/insurance brokerage Marsh.
The firm’s Global Insurance Market Index found that average price increases were driven mainly by growth in property insurance rates and financial and professional lines.
Last quarter marked the ninth consecutive quarter of average price increases, but was the first time since the Index began that all global regions reported average pricing increases of 5% or higher.
On average, pricing for property risks increases by 13%, while financial and professional lines rose nearly 18%, and casualty was up 3%.
Overall, the Pacific region had the largest composite pricing increase in the index at 21%, a quarterly trend that has continued for three years.
According to Marsh, Pacific composite pricing was largely driven by increases in directors and officers (D&O) rates, as well as increases in property.
“The impact of natural catastrophe losses and increasing concern about litigation trends have led to price increases for many insurance buyers,” commented Dean Klisura, President, Global Placement and Advisory Services at Marsh.
“Global pricing has now increased every quarter for two years, and while capacity largely remains strong, there has been tightening in certain product lines and regions.”