Global commercial insurance prices continue to increase rapidly

Published: Friday, 05 February 2021 12:33

Global commercial insurance prices increased 22 percent in the fourth  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-on-year average increases of 20 percent in the third quarter and 19 percent in the second quarter of 2020.

Although the global index increased 22 percent, the index shows that price increases may be starting to plateau for some lines of insurance in certain geographies. For example, property insurance and directors and officers (D&O) insurance pricing in the US shows signs of moderating increases, and similar trends can be seen in certain property and casualty lines in Continental Europe and Latin America and Caribbean (LAC). Regionally, Continental Europe, Asia, and LAC have now experienced moderate levels of price increases for three quarters. 

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

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