The global insurance broking giant and risk advisor Marsh has today revealed that global commercial insurance prices increased 6% in Q3 2022, representing 20 consecutive quarters of increases.
However, in its Global Insurance Market Index, the broker highlighted that the increase is down from the 9% rise seen in Q2 2022 with pricing moderated in most regions. This is driven by the first decrease in certain financial and professional lines seen since Q3 2017, most notably in directors’ and officers’ insurance.
Breaking the Index’s findings down by region, Marsh revealed that:
- The US, with a composite pricing increase of 5% (down from 10% in Q2 2022), experienced the largest moderation in average price increases.
- In the UK, rates increased by 7% (down from 11% in Q2 2022), in the Pacific by 5% (down from 7% in Q2 2022), and in Asia by 2% (down from 3% in Q2 2022).
- Meanwhile, in Latin America and the Caribbean prices increased by 5% (the same as Q2 2022) and by 6% in Continental Europe (the same as the previous two quarters).
Among other findings, the survey noted that global property insurance pricing rose 6% on average in Q3 2022 (the same level as the previous quarter) while casualty pricing was up 4% on average (compared to 6% in the previous quarter).
For the first time since its inception, Marsh’s index published a global cyber insurance pricing figure, separating cyber data from financial and professional lines data. Globally, cyber insurance pricing increased 53% in Q3 2022. In the largest cyber insurance markets, the rate of increase continued to moderate – with pricing rising 48% in the US and 66% in the UK compared to 79% and 68% respectively in the prior quarter.
Marsh noted that the inclusion of cyber meant that, for the first time since 2017, overall pricing in financial and professional lines fell by 1% in Q3, compared to a 16% increase in Q2 (a figure that included cyber). The result of this quarter was accredited to decreases in the US, UK and Australia and moderating rates of increase elsewhere.
Meanwhile, the index highlighted that valuation continues to be a focal point for insurers at renewal, driven by concerns about inflation.
Commenting on the report, Lucy Clarke, president of Marsh Specialty and Global Placement at Marsh said: “The global business environment remains tough for clients. Ongoing inflation and geopolitical instability are affecting all sectors and we expect even more challenging conditions in the already strained property catastrophe market following Hurricane Ian.
“We are working closely with our clients to get the best possible outcomes from the market, as well as explore the whole range of options available to assess and address their risks including alternative and captive solutions.”