Average price increases were driven principally by increases in property insurance rates and financial and professional lines. Among other findings, the survey noted:
- The first quarter of 2020 was the tenth consecutive quarter of average price increases.
- Globally, on average, pricing for property risks increased 15%; financial and professional lines rose nearly 26%; and casualty increased 5%.
- Composite pricing in the first quarter increased in all geographic regions for the sixth consecutive quarter.
- The US (14%), UK (21%), and Pacific (23%) regions all experienced double-digit pricing increases. Pricing increases in these regions were largely driven by increases in property, financial and professional lines, and directors and officers (D&O) rates in particular. In the US, for example, pricing in the D&O market was up 44%.
Commenting on the findings, 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.”