Global commercial insurance prices increased by 15% during the third quarter, according to Marsh LLC's latest Global Insurance Market Index, which was released on Tuesday.
row. of increases. The only exception was the United States, where interest rates rose by 14%, up from 12% in the second quarter, driven by "significant" increases in cyber insurance rates and a moderate increase in the property / accident rate.
The global compound interest rate was driven by the United Kingdom, which had a compound price increase of 27%, a decrease from 28% in the second quarter, and the Pacific region, with an increase of 1
The results are largely in line with comments from the previous week by Dan Glaser, President and CEO of Marsh & McLennan Cos. Inc.
The growth rate in Asia was 6%, unchanged from the second quarter; 2% in Latin America, down from 4%; and 10% in Continental Europe, a decrease from 13%.
Pricing on property lines increased by 9% on average, but a decrease from a 12% increase during the second quarter.
Pricing for accident victims increased by 6% on average, up to and including the first and second quarters. Pricing in the financial and professional sectors increased by 32%, compared to 34% in the previous quarter.
Pricing for cyber insurance was the wildcard in the report, increasing by 96% in the United States, an increase of 40 points from the second quarter. Cyber prices rose by 73% in the UK, up from 35% in the second quarter. In both cases, the exceptional increases in the frequency and severity of ransomware claims were driven.
Lucy Clarke, CEO of Marsh Specialty and Marsh Global Placement, said the broker expects prices to continue to slow on most lines except for cyber.