Global commercial insurance prices increased 18 percent in the first quarter of 2021. The quarter is the first to show a fall in the average rate of increase since the first rise in global rates in the fourth quarter of 2017. It follows year-on-year average increases of 22 percent in the fourth quarter and 20 percent in the third quarter of 2020. This data comes from the latest Marsh Global Insurance Market Index, a proprietary measure of global commercial insurance premium pricing change at renewal, representing the world's major insurance markets and comprising nearly 90 percent of Marsh's premium.
According to the index, increases across geographies moderated due to generally slower rate rises in property insurance and financial and professional lines. The United Kingdom, with a composite pricing increase of 35 percent (down from 44 percent in fourth quarter 2020) and the Pacific region, with a 29 percent increase (down from 35 percent in fourth quarter 2020) drove the global composite rate. The rate of increase in the United States was 14 percent (down from 17 percent), in Pacific 29 percent (down from 35 percent), in Asia 8 percent (down from 11 percent), and in Latin America and the Caribbean 5 percent (down from 9 percent).