Commercial insurance rates rise

Global commercial insurance prices rose globally in the first quarter of 2018 for the second consecutive quarter, according to Marsh research.

This was largely driven by property insurance pricing, which continued to be affected by 2017 catastrophe losses and increases in financial and professional lines.

Prices increased on average by nearly 1 percent in the first quarter of 2018.

The upwards trend follows four-and-a-half years of price decreases.

Property insurance pricing increased nearly 3 percent on average in the first quarter globally. 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.

“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 at Marsh. “However, overall market capacity remains strong with pricing decreases continuing in many regions for lines of business less affected by losses.”