12 May 2020Insurance

COVID-19 to impact insurance pricing in 2020: Marsh

Global average commercial insurance prices increased 14 percent in the first quarter of 2020, the largest recorded since 2012, according to the new global insurance market index released by Marsh.

The increase comes despite the minimal impact of the COVID-19 global pandemic on pricing in the quarter. Marsh said the ongoing pandemic is likely to have an impact on pricing for the balance of 2020.

According to the report, average price increases were driven principally by increases in property insurance rates and financial and professional lines.

The first quarter of 2020 was the tenth consecutive quarter of average price increases.

Globally, on average, pricing for property risks increased 15 percent; financial and professional lines rose nearly 26 percent; and casualty increased 5 percent.

The composite pricing in the first quarter increased in all geographic regions for the sixth consecutive quarter.

The US (14 percent), UK (21 percent), and Pacific (23 percent) regions all experienced double-digit pricing increases, largely driven by increases in property, financial and professional lines, and directors and officers (D&O) rates in particular.

Dean Klisura, president, global placement and advisory services at Marsh, said: “Pricing was trending higher in the first quarter, prior to any meaningful impact from losses associated with COVID-19. However, COVID-19 will likely have an impact on pricing for the balance of 2020.”

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
10 August 2020   The pricing movements were impacted by COVID-19 losses; upward pressure anticipated for the balance of 2020.
Insurance
25 June 2020   The impact of COVID-19 on the sports, entertainment and media industries presents a great challenge, says broker.
Insurance
1 May 2020   Glaser warns pay reductions and dividend cuts during this difficult period can have lasting implications.