Global commercial insurance prices increased 15% in the second quarter of 2021, according to the latest market index report by Marsh.
It’s reported that this year marks the 15th consecutive quarter of rate increases in the global commercial insurance market.
Furthermore, it marks the third consecutive quarter to show a fall in the average rate of increase and follows year-on-year average increases of 18% in the first quarter and 22% in the fourth quarter of 2020.
Marsh highlights how increases across all geographies moderated as a result of slower rate rises in property insurance outside of Europe, as well as financial and professional lines, excluding Asia and Latin America and the Caribbean (LAC).
The UK, with a composite pricing increase of 28% and the Pacific region, with a 23% increase continued to drive the global composite rate.
Marsh adds that the rate of increase in the US was down 14% at 12%, in Asia 6% down from 8%, in LAC 4% down from 5%, and in Continental Europe 13% down from 15%.
The survey noted how global property insurance pricing was up 12% on average, while casualty pricing was up 6% on average, which was the same as the prior quarter.
In addition, the report shows how cyber insurance pricing again diverged from the moderation trend. In the US prices increased 56% in the US, compared to 35% in Q1, and 35% in the UK, compared to 29% in first quarter, driven by the frequency and severity of ransomware claims.
Commenting on the report, Lucy Clarke, President, Marsh Specialty and Marsh Global Placement, said, “Clients continue to face a challenging risk and insurance landscape as the global economy emerges from the pandemic.
Although we expect continued pressure on pricing, especially in loss affected lines, we also expect the general trend of moderating price increases to continue through the rest of the year.”
