Following four-and-a-half years of price decreases, global commercial insurance prices rose, on average, for the second consecutive quarter. This was largely driven by property insurance pricing, which continued to be affected by 2017 catastrophe losses and increases in financial and professional lines.
That’s according to insurance broker Marsh’s Global Insurance Market Index for the first quarter of 2018.
“The impact of catastrophe losses last year continued to impact property insurance prices in the US and elsewhere,” said Dean Klisura, president, Global Placement and Specialties. “However, overall market capacity remains strong with pricing decreases continuing in many regions for lines of business less affected by losses.”
Overall, the market remained stable with first quarter prices increasing on average by nearly 1 percent.
Globally, property insurance pricing increased nearly 3 percent on average. Financial and professional lines pricing increased approximately 2 percent on average in the quarter, driven by increases in the UK, Latin America and Australia. Casualty pricing declined by nearly 2 percent on average.
Most regions showed either a moderate increase in pricing in the first quarter, or a lessening of the pace of decrease. The one exception was Asia, which had a greater decrease compared to the previous quarter.
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