世界人口l Insurance Pricing Increased in Q4 2020 — But Is Showing Signs of Plateau
It was the thirteenth consecutive quarter of increases in the Marsh Global Insurance Market Index and the largest increase observed since the index’s inception in 2012 (see Figure 1).
The U.K. and Pacific region led the increases, with average composite insurance pricing up by 44% and 35%, respectively (see Figure 2). Average pricing in the U.S. rose by 17%, down slightly from the 18% year-over-year increase experienced in the third quarter.
Continental Europe (14%), Asia (11%) and Latin America and Caribbean (9%) have had moderate levels of pricing increases for three quarters, which suggests that price hikes are slowing in these regions. Pricing increases also may be starting to plateau for certain insurance products in certain geographies — for example, directors and officers (D&O) and property in the U.S. — due in part to new capacity entering the market.
Figure 2: Composite Insurance Pricing Change by Region
US Insurance Pricing Increases 17%
Led by increases in property and financial and professional lines, U.S. insurance pricing in the fourth quarter increased an average of 17%.
财务和专业线in the U.S. increased an average of 28% in the quarter. D&O pricing was up 44%, less than the 51% year-over-year increase seen in the previous quarter. About 95% of clients experienced an increase, and 15% reduced their limits. D&O pricing continued to moderate during the fourth quarter, and this trend is expected to continue through the first half of 2021, barring unforeseen changes in conditions.
伤亡pricing in the U.S. increased an average of 9% in the fourth quarter. Workers’ compensation pricing declined 4%, on average; excluding workers’ compensation, casualty pricing increased 15%, on average.
Overall, insurance pricing in the fourth quarter of 2020 in the U.K. increased 44%, the highest of any region.
财务和专业线increased 90%, largely due to pricing for D&O, where renewals were extremely challenging as insurers cited a deterioration in claims, a COVID-impacted economy, insolvencies, wrongful trading, and a lag on claims post government support.
Cyber pricing increased 25% to 30%, on average.
Insurance pricing in the fourth quarter of 2020 in Asia increased 11%, year-over-year.
财产insurance pricing rose 16% in the region, on average. In most countries, the domestic marketplace insulated small to medium enterprise clients from the sharpest increases.
Insurance Pricing by Region
- Continental Europe整体综合保险定价平均增长14%。金融和专业线路的平均价格上涨了22%，房地产价格上涨了19%。
- 年综合定价上涨9%Latin America，与第三季度持平，并连续第十三个季度增长。房地产价格平均上涨16%，金融和专业行业平均上涨22%。
- 今年保险价格上涨了35%太平洋region. Property pricing rose 31%, on average. Financial and professional lines rose 51%, on average, with public company D&O rising more than 100% in many cases, with reduced limits common.