Global commercial insurance rates rose 19% in the second quarter, driven higher by claims related to COVID-19 and other large losses, insurance broker Marsh said on Monday, Trend reports with reference to Reuters.
The rate rise was the highest since Marsh began its commercial insurance rates survey in 2012, it said in a statement.
Directors & officers’ insurance premiums in Britain rose by more than 100%, while in the United States, D&O rates for public companies were up by 59%, Marsh said. Companies buy D&O insurance to protect against litigation costs.
“As insurers continue to work through claims in property and D&O, and with the full cost of COVID-19 still developing, upward pressure on pricing is anticipated for the balance of 2020,” Dean Klisura, President, Global Placement and Advisory at Marsh said.