New York:
Global commercial insurance pricing increased for the seventh consecutive quarter in the second quarter of 2019, according to Marsh's quarterly Global Insurance Market Index, a proprietary measure of global commercial insurance premium pricing change at renewal, representing the world's major insurance markets and comprising nearly 90 per cent of Marsh's premium.
Average commercial insurance pricing increased nearly 6 per cent in second quarter 2019, the largest increase since the survey began in 2012, and the seventh consecutive quarter of average pricing increases.
Globally, on average, pricing for property risks increased 8 per cent ; financial and professional lines rose almost 10 per cent; and casualty increased nearly 1 per cent. In general, pricing increases were more pronounced in large accounts, particularly in property and D&O.
Composite pricing in the second quarter increased in all geographic regions for the third consecutive quarter, largely driven by rates in property and directors and officers (D&O) coverages.
Asia
Insurance pricing in the second quarter of 2019 in Asia increased by nearly 4 per cent year-overyear, the largest composite increase in the region in five years
Property insurance pricing rose 5 per cent as international carriers sought pricing increases across the region.
• CAT pricing increased double digits in several Asian countries,including Singapore, Hong Kong, and India.
• Non-CAT pricing showed variability in the region, ranging from single-digits decreases to single-digit increases.
• CAT losses in the fourth quarter 2018 impacted many insurers’ profitability, and price corrections have occurred at an
accelerated pace. Certain Lloyd’s Syndicates have withdrawn from lines of business, impacting the Singapore hub.
Casualty pricing declined 0.4 per cent, continuing a trend toward stable after several years of moderate decreases.
• The moderation of casualty pricing was due in large part to increased pricing in auto/motor liability which consistently
ranged from the low- to mid-single digits.
• Increases in auto pricing were generally balanced by decreases in general liability observed across the region, with pricing down as much as 10 per cent in some countries.
Financial and professional liability pricing increased 3 per cent, with insurer capacity restrictions and reduced appetite, although
capacity in Asia remains more than adequate for the majority of risks.
• Financial and professional liability insurance markets in Asia remain generally flat, but there were challenges in some limited
segments — mainly D&O risks with US listings — and particularly for China-based risks.
• Insurer competition started to decline for financial institution clients, especially on risks with claims or notification activity.
• Cyber insurance pricing generally held flat on renewals. Signs of more cautious underwriting and higher prices being sought on new business.
• Some tightening on the scope of cyber coverage, with insurers resisting broader system failure wordings, which had been
secured previously on Asian risks.