Global commercial insurance pricing increased 20 percent in third quarter

Published: Friday, 06 November 2020 09:41

Global commercial insurance prices increased 20 percent in the third quarter of 2020, according to the Global Insurance Market Index released by Marsh. The increase, the largest since the index was launched in 2012, follows year-over-year average increases of 19 percent in the second quarter and 14 percent in the first quarter.

The average composite price increase of 20 percent was driven principally by property insurance rates and financial and professional lines. Among other findings, the survey noted:

Commenting on the findings, Lucy Clarke, President, Marsh JLT Specialty and Marsh Global Placement, said: “Challenging conditions continue to exist across many parts of the insurance marketplace. Uncertainty, particularly related to COVID-19, and loss experience in many lines have both contributed to this three-year trend of increasing insurance costs. For many clients these conditions are occurring at a time when they can least withstand them, and are leading many companies to rethink their insurance buying patterns including increasing retentions, reducing limits, and modifying policy terms and conditions. As we expect these challenging conditions to persist into 2021, we are committed to ensuring we leave no stone unturned when it comes to the best outcomes for our clients in this market.”