Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • May 2019
05

Global insurance prices rise at fastest pace in seven years

Open-access content Monday 20th May 2019 — updated 5.50pm, Wednesday 29th April 2020

Commercial insurance prices increased more in the first three months of this year than in any quarter since 2012, research from insurance broker Marsh has found.

2


The Global Insurance Market Index shows that average commercial insurance prices rose by 3% between January and March, marking the sixth consecutive quarter of increases.

And composite pricing grew in all regions for the second quarter running, which Marsh said was driven by rate changes in property and directors and officers (D&O) insurance.

The Pacific region recorded the largest price rise of over 10% - a tend that has continued for eight quarters - while the UK and continental Europe saw average increases of 2% or higher.

"While 3% is the largest average increase in insurance pricing we have seen since the index began in 2012, market capacity remains strong in most products and geographies," Marsh Global Placement president, Dean Klisura commented.

The research also found that pricing for property risks increased by almost 5% on average globally, slightly above the rates recorded in the previous four quarters.

Casualty prices declined nearly 1% on average, continuing a trend started in 2013.

And average pricing in financial and professional lines increased by almost 6%. All regions experienced a rise, which was largely driven by increases in D&O insurance.

This comes after research from finance company Premium Credit found that a growing number of UK businesses are ending their insurance coverage because they can't afford it.

The findings show that 33% of small and medium-sized firms have cancelled a policy over the last three years because of price, with 50% of these happening in the last 12 months.

"It is shocking to see so many missing out on vital, sometimes legally necessary cover due to cost or concerns over payments," Premium Credit director, Adam Morghem, said.

"This is leaving millions exposed to unnecessary risks and potentially even greater costs further down the line." 


Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession


This article appeared in our May 2019 issue of The Actuary.
Click here to view this issue
Filed in
05

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Catastrophe Analyst

London, England
£70000 - £100000 per annum
Reference
146055

Catastrophe Analyst

London, England
Up to £50000 per annum + + Bonus
Reference
146053

Principal Pricing Analyst

England, London
£60000 - £70000 per annum
Reference
146052
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ