Global commercial insurance prices increased 15 percent in the second quarter of 2021, according to the Global Insurance Market Index released by Marsh. This is the 15th consecutive quarter of rate increases in the global commercial insurance market. However, it also marks the third consecutive quarter to show a fall in the average rate of increase and follows year-on-year average increases of 18 percent in the first quarter and 22 percent in the fourth quarter of 2020.
Increases across all geographies moderated due to slower rate rises in property insurance, except Europe, and financial and professional lines, except Asia and Latin America and the Caribbean (LAC). The UK, with a composite pricing increase of 28 percent (down from 35 percent in Q1 2021) and the Pacific region, with a 23 percent increase (down from 29 percent in Q1 2021) continued to drive the global composite rate. The rate of increase in the US was 12 percent (down from 14 percent), in Asia 6 percent (down from 8 percent), in LAC 4 percent (down from 5 percent), and in Continental Europe 13 percent (down from 15 percent).
The survey noted that cyber insurance pricing again diverged from the moderation trend. In the US prices increased 56 percent, compared to 35 percent in Q1, and 35 percent in the UK, compared to 29 percent in first quarter, driven by the frequency and severity of ransomware claims.