Global commercial insurance prices increased 14 percent, on average, in the first quarter of 2020. All three major product lines — property, casualty and financial and professional — showed increases in the first quarter, according to Dean M. Klisura, President of Global Placement and Advisory Services at Guy Carpenter-affiliate Marsh.
It was the 10th consecutive quarter of increases in the Marsh Global Insurance Market Index. Although the COVID-19 global pandemic had an insignificant impact on pricing in the first quarter, the reported increase was the largest year-over-year increase in the index since its inception in 2012. Marsh anticipates that COVID-19 will likely have an impact on pricing for the balance of 2020.
The highest average levels of increase in the first quarter were observed in financial and professional liability, which increased by 26 percent, on average, while property insurance was up 15 percent globally. Casualty lines increased 5 percent. All regions have now demonstrated six consecutive quarters of composite pricing increases.