The U.S. economy continues to respond to the impact of the pandemic, among other factors. The news related to the insurance market also remains sobering.
Pre-COVID-19, successive years of losses, sustained prior-year hurricane loss creep, growing concerns over social inflation, and climate change had already altered reinsurers’ views and appetites for peak zone exposures.
Globally and across all major lines, commercial insurance prices rose an average of 19% in the second quarter of 2020, according to the Marsh Global Insurance Market Index, the eleventh consecutive quarter of price increases and the largest year-over-year increase recorded since the index’s inception in 2012.
While the data is not yet finalized, third quarter results are expected to follow this trend—the twelfth consecutive quarter of price increases. This trend is expected to continue throughout the rest of 2021.
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