Insurance premiums increased by 19% in the second quarter of 2020 globally

Global Insurance Market Report published by Marsh

Covid-19, among the losses that impact prices.

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Insurance premium prices increased by 19% globally in the second quarter of 2020, according to data collected in the Global Insurance Market Report posted by Marsh, a global leader in insurance brokerage and risk consulting. 

 

The increase, the largest since this index was launched in 2012, maintains the average upward trend year after year; In the first quarter of the year, 14% was recorded and in the fourth quarter of 2019, 11%.

 

As in the first quarter, average price increases were driven primarily by increased property casualty and financial and professional lines insurance premiums. These are other conclusions drawn from the Report:

 

 

Globally, property damage insurance premiums increased by 19% and financial and professional lines increased by 37%, while accident insurance premiums They increased by 7%, on average.

 

For the seventh consecutive quarter, compound rates increased in all geographic regions

 

The regions that recorded double-digit price increases were:

 

EE. UU (18%), United Kingdom (31%), Continental europe (15%) and the area of Pacific (31%), all driven largely by an increase in damage coverage and directors' and officers' liability insurance policies (known by their acronym in English as D&O).

 

Some markets D & O For example, premiums on D&O insurance policies of North American public companies increased by 59% on average, and more than 90% of customers experienced an increase as a result. In it United Kingdom, the increase in D&O insurance premiums, on average, is more than 100%. Australia is in a similar situation, since the lack of competition caused, in the second quarter, a shortage of market capacity.

 

According to Dean Klisura, Global President, Placement Advisory at Marsh: “During the second quarter, the price movement in the insurance market occurred, in large part, due to the losses of the COVID-19, although other significant losses also put pressure on the precious metals. Currently, insurers are working on damage claims and D & O, and with COVID-19 "Still in the development phase, upward pressure on prices is expected for the remainder of 2020."

 

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En Continental europe, material damage insurance premiums experienced an increase of 20%, which marked the seventh consecutive quarter of increases.

 

Sharp increase in damage insurance premiums in CE, driven by complex placements and catastrophic risk insurance programs.

 

In the main countries (France, Germany, Italy and Spain) double-digit increases were recorded in damage premiums for catastrophic (CAT) and non-catastrophic (Non-CAT) risks. No other country in the region, included in the report, reported a drop in property insurance premiums.

 

Pressure on rates, withholdings and market capacity drove the use of traditional wholesale markets in London and Zurich, as well as an increase in demand for alternative structures.

 

Regarding accident insurance premiums, there was an increase of 5%, which represented the fourth consecutive quarter of increases.

 

The excess of accidents drove the general increase in prices, especially for organizations with exposure in North America.

 

En France, Germany, Italy y Spain, civil liability insurance premiums registered an increase that ranged between 5% and 15%.

 

Auto insurance premiums remained stable.