Insurance Overview for web
Even before the pandemic, insurance premiums cutting across lines were inching up. Now, as the full costs related to COVID-19 claims sink in, premiums will shoot up further. Image Credit: Shutterstock

Dubai: Global insurance premium rates are on the march – and it will add up for individuals and businesses.

In the second quarter alone, these rates were higher by 19 per cent and that’s on top of a 14 per cent hike in the first quarter and by 11 per cent in the fourth quarter of last year. This is according to Global Insurance Market Index brought by March, the brokerage firm.

The biggest hikes in second quarter coverage rates were for property, followed by financial and professional lines.

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Dean Klisura, President, Global Placement and Advisory at Marsh, said in a statement: “While pricing movements this quarter were impacted by losses related to COVID-19, other large losses contributed to overall pricing pressures.

“As insurers continue to work through claims in property and D&O (directors and officers), and with the full cost of COVID-19 still developing, upward pressure on pricing is anticipated for the balance of 2020.” (Directors and officers’ liability relates to insurance payments made against claims these individuals may face from their work-related roles or decisions.)

What's rising?
• Global property insurance rates are up 19 per cent, while financial and professional lines gained 37 per cent. Casualty pricing premiums are higher by 7 per cent on average at the end of the second quarter.
• The US (higher by 18 per cent), UK (31 per cent), Continental Europe (15 per cent), and Pacific (31 per cent) regions all had double-digit pricing increases. Pricing increases in these regions were largely driven by increases in property and directors and officers (D&O) liability coverages.
• Certain D&O markets saw large increases. In the US, public company D&O prices were up 59 per cent on average, with more than 90 per cent of clients experiencing an increase. In the UK, D&O pricing increases averaged over 100 per cent.