Global commercial insurance pricing increased by an average of 2% in the final quarter of last year, driven mostly by increases in global property and financial and professional (FinPro) lines, according to international re/insurance broker Marsh.
The market remained stable overall, says Marsh, and the 2% average increase in the fourth-quarter of 2018 marks the fifth consecutive quarter of increases.
Price fluctuations fell within a fairly narrow range across the majority of products and geographies, says the broker, underpinning a stable market landscape, overall.
Much of the average 2% rate increase was driven by global property and FinPro business lines, explains Marsh. In fact, pricing for property risks increased by over 3.5%, while FinPro liability pricing accelerated further, increasing by an average of 4.7% in the fourth-quarter.
Somewhat offsetting the increases in global property and FinPro lines in Q4, the Marsh Global Insurance Market Index reveals that, on average, global casualty prices declined by 1.1% in the quarter, which continues the trend of year-on-year declines which has been evident since 2013.
By region, the lowest average commercial insurance price increases were evident in both the U.S. and Asia, at 0.4%, although it’s worth noting that in both instances this is an improvement from the -0.4% in the U.S. in Q3 2018, and the -0.5% recorded in Asia in Q3.
The UK witnessed average increases of 1% in Q4, while the Continental Europe region recorded an average increase of 1.5%, and Latin America of 1.4%.
The largest increase witnessed in the quarter, by region, was the Pacific, which had an average Q4 increase of 16.1%, according to Marsh.