Global commercial insurance prices rose 22% in the fourth quarter of 2020, the largest increase over the year before the Marsh Global Insurance Market Index since its inception in 2012, the broker said Thursday.
It was also the 13th quarter in a row of price increases.
The United Kingdom and the Pacific drove the global composite increase, with composite price increases of 44% and 35% respectively, up from 34% and 33%. The US saw an increase of 17%, a decrease of one point from the third quarter 18%, data showed.
Latin America increased by 9%, corresponding to the third quarter, and Asia increased by 11%, a point from 12% in the third quarter.
Average composite pricing increased in all regions for the ninth consecutive quarter.
In line, global real estate rose by 20% in the fourth quarter, compared to 21
Despite the overall increases, increases in certain specific lines and geographic areas have begun to decline, Marsh said, as new capacity blunts additional pricing.
In the United States, surplus liability prices increased by 28%, and 75% of customers experienced an increase. However, the wage compensation was 4%.
"Price increases may begin to plateau for certain insurance products in certain geographic areas, such as board members and real estate in the United States, in part due to new capacity entering the market."