Average global commercial insurance pricing increased in Q4 for the first time since the first quarter of 2013, according to new data. The price hike was driven largely by global property insurance pricing, which was impacted by Q3 catastrophe losses.
Average pricing rose by 0.8% in the fourth quarter, compared to a 1.9% decrease in Q3 2017, according to Marsh’s Global Insurance Market Index. Globally, property insurance pricing rose 3.2% in Q4. The previous quarter, it decreased 2.4%.
Financial and professional lines pricing was also up, rising 0.1% in Q4, while casualty pricing fell 1.5%. Both financial and professional lines pricing fell in the third quarter of 2017, according to Marsh, by 1.4% and 1.7%, respectively.
On a regional level, average pricing increased in the UK, Latin America and Australia – which saw its fourth straight quarter of pricing increases. Average pricing fell in the US, continental Europe, and Asia. US cyber insurance pricing increased for the first time since the fourth quarter of 2016.
“Losses from hurricanes Harvey, Irma and Maria, and wildfires in California, drove increases in property pricing in the US,” said Dean Klisura, president of global placement and specialties at Marsh. “Although property pricing generally increased, market capacity remains abundant. Pricing in all global regions showed either a moderate increase in the fourth quarter, or a slowing of the pace of decrease.”