Australia’s Corporate Insurance Premiums are sky rocketing

Australia’s Corporate Insurance Premiums are sky rocketing Commercial general insurance premiums increased by 23% in the first quarter ending 31 March 2020, according to the latest quarterly pricing report from Marsh.

Prices globally gained for the 10th straight quarter, rising 14% during the period.

Last quarter’s growth, as measured by the Global Insurance Market index, was the largest year-on-year increase since 2012 when the price tracking monitor was created.

Marsh believes that pricing was trending higher in the first quarter, prior to any meaningful impact from losses associated with COVID-19.

COVID-19 may have an impact on pricing for the balance of 2020.

In the Pacific region, financial and professional liability pricing rose 33%, marking 11 straight quarterly increases where Property pricing has gone up 23%

Property pricing went up 23%, with double-digit hikes reported for catastrophe and non-catastrophe risks in Australia and New Zealand. Part of the rate surge was driven by last summer’s horror bushfire season and a number of massive floods in December and January.

According to Marsh Liability rates were up 8%, up slightly from 6% in the previous quarter. Pricing for some risks ranged from 10-20%.

On a global scale, financial and professional liability pricing had the sharpest rise of 26%, followed by property with 15% and general liability with 5%.

Pricing in the UK market surged 21%, which was the second highest after the Pacific region. US rates jumped 14%, continental Europe 8% while Asia and the combined Latin America and Caribbean region saw increases of 6%.