Despite significant price increases seen in the last quarter of 2020, premiums for some classes are beginning to plateau though
The average price of commercial insurance grew by 22% in the last quarter of 2020 compared to the same period of the previous year, according to Marsh.
This is the largest quarterly increase it has seen since it began recording the data in its Global Insurance Market Index, it said.
Large increases were also seen in the third (20%) and second (19%) quarters of last year, Marsh added.
Despite the fresh increase, the international broker said that prices showed signs of plateauing ”for some lines of insurance in certain geographies”.
The increase was fuelled by rises in the property insurance, financial and professional lines, it said.
Marsh JLT Specialty and Marsh Global Placement president Lucy Clarke said: “The global insurance marketplace was very challenging in 2020, and we expect these conditions to persist through the first half of 2021.
”Although we are seeing signs that price increases are beginning to plateau in some lines, our clients continue to face tough trading conditions.
”We are committed to presenting all risk mitigation and insurance placement options to our clients and to offer advice and support as they consider adjusting their insurance buying patterns.”