The global commercial insurance marketplace has been in a tight bind for the past few years.
According to Marsh’s latest Global Insurance Market Index, global commercial insurance prices
increased 15% in the second quarter of 2021 – marking 15 straight quarters of rate increases –
and the trend seems to have continued in the third quarter.
Challenges in the commercial insurance marketplace have been “exacerbated over time by two key factors,” according to Don Forgeron (pictured), president and CEO of Insurance Bureau of Canada (IBC). First, the COVID-19 pandemic and related economic recession have had significant impacts on businesses, insurers included. Second, the industry is contending with: “A prolonged period of increasing claims, lower returns, lower profits within the industry, and much greater scrutiny amongst multinational insurers about where and how they put their capital to work in markets around the world,” Forgeron explained.