Premiums to Increase as Commercial rates end 54-month decline
Global commercial insurance prices have increased for the first time in more than four years, lifted by gains in the catastrophe-hit property sector, according to Marsh. Large catastrophe losses in the third quarter drove up global property insurance pricing. The broker’s Global Insurance Market Index snapped an 18-quarter losing streak, rising to 0.888 points in the December quarter from 0.886 points in the preceding quarter. The Global Insurance Composite Pricing Change showed a 0.8% rise, its first since the first quarter of 2013. “Although property pricing generally increased, market capacity remains abundant,” Marsh says. “Pricing in all regions showed either a lessening of the pace of decrease or a moderate increase in the fourth quarter.” Pricing for property grew 3.2% in the December quarter, while financial and professional lines recorded a 0.1% gain. In the US, property pricing was 3.6% higher, but casualty declined 2.8% and financial and professional fell 1.6%. In Australia composite pricing grew for the fourth consecutive quarter, with the December quarter logging in a 10.4% gain. All major product lines recorded price gains, with financial and professional lines registering the strongest rise at 15.8%. Property grew 9.5% and casualty 6.4%.