According to Marsh LLC, global commercial insurance pricing increased for many lines of coverage in the fourth quarter, marking the longest run of rate increases since the inception of its Global Insurance Index in 2012.
Marsh said in its pricing report released on Monday that global composite rates rose 2%, down from 3% over the past two quarters, while rates in the US rose 3%.
The brokerage said this was the 25th consecutive quarter of rate hikes.
Marsh said U.S. property rates rose 11%, but that was down from the 14% rate increase in the third quarter. Property rates rose in every global region except the Pacific, where they were stable.
The casualty rate in the US rose to 3% from 2% in the third quarter, and rose 5% excluding workers’ compensation. Globally, insurers are concerned about social inflation and increasingly large jury awards, Marsh said.
Marsh said financial and professional lines buyers continued to get some relief from rates, as rates in the US fell again to 6%, with rates falling in every global region.
Cyber liability rates in the US declined by 4%, compared to a 6% decline in the third quarter. Marsh said the increase in frequency, complexity and severity of ransomware attacks, and evolving privacy regulations, also led to an increase in claims in the fourth quarter.
The brokerage said the focus on cybersecurity controls continues, with insurers looking for year-over-year improvements.
In the United Kingdom, property rates rose 1% compared with 2% in the third quarter; Casualties increased 2% compared to 1%; And the financial and business sector declined by 6% compared with a decline of 9%.
Wealth in Europe rose again by 7%; Casualties increased 6% compared to 5%; And the financial and business sector declined by 7%, while the sector declined by 4%.
Wealth in Asia rose again by 2%; Casualty rate drops again by 2%; The financial and business sector declined by 6% compared to 3%.
