Averagecommercial insurance prices increased by slightly morethan 1% in the third quarter, driven by increases inproperty and financial and professional lines. (Image:iStock)

Global commercial insurance pricing increased for the fourthconsecutive quarter in the third quarter of 2018, according toMarsh's quarterly Global Insurance Market Index.

CAT events, increased claims on non-property coverage

“Average prices have increased moderately for four consecutivequarters as the marketplace continues to respond to severalfactors, including recent CAT events and increased claim activityon certain non-property coverages,” according to Dean Klisura,president, Global Placement and Specialties at Marsh. “However,market capacity remains strong in most product areas andgeographies, limiting overall price increases.”

Highlights in the Q3 2018 report include:

• Average commercial insurance prices increased byslightly more than 1% in the third quarter, driven byincreases in property and financial and professional lines.
• Average commercial insurance pricing has now increasedfour consecutive quarters.
• While prices rose slightly, on average, the marketremained stable. Prices during the quarter generallyfluctuated within a relatively narrow range across most productsand geographies.
• Globally, pricing for property risks increased morethan 3% on average, in line with the prior three quarters.Casualty prices declined nearly2% on average, continuing a trend of year-over-yeardeclines stretching back to 2013. Pricing for financial andprofessional lines continued toaccelerate, increasing more than 3% on average for thesecond consecutive quarter.
• Regionally, Australia again had the largest pricingincreases in the index. Average prices also increased inthe UK and Latin America. Prices decreased slightly in the U.S.,Continental Europe, and Asia.

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