According to the index, global commercial insurance prices rose 3% in Q2 2023, compared to a 4% increase in Q1, marking the 23rd consecutive quarter of pricing increases.
The Marsh report revealed that pricing was largely consistent across all regions in Q2, being predominantly driven by rate decreases for financial and professional lines and continued in the cyber insurance market. These conditions were offset by property insurance increases, which Marsh revealed are the largest of any major product line in the quarter.
Broken down, region-by-region:
Among other findings of the report, Marsh revealed that:
• Global property insurance pricing rose 10%, on average, in Q2 2023 – the same as in the previous quarter. Casualty insurance pricing increased 3%, also the same as in Q1.
• For the fourth consecutive quarter, overall average pricing for financial and professional lines fell. Attributed to both rate reductions and additional capacity – especially in the UK – average pricing decreased 8% in Q2, compared to a decline of 5% in Q1,
• Globally, cyber insurance pricing increases moderated to 1%, compared to 11% in the prior quarter and 28% in Q4 2022. The report credited this to “significant moderation” in the US, with average price decreases of 4%, compared to 11% increases in Q1.
• Marsh pinpointed concerns about the impact of inflation on asset values and claims costs as a key focus for insurers at renewal in most regions
Commenting on the findings of the index, Pat Donnelly, president at Marsh Specialty and Global Placement, Marsh, highlighted the positive development that is continued moderation in cyber and D&O insurance. However, he noted that continued increases in the property market, specifically property catastrophe, remain a key area for concern for Marsh’s clients, and a focus for Marsh itself.
He added: “As we move through the second half of 2023, we are working with clients to explore a broad range of options that will help them navigate the challenges ahead amid ongoing economic, inflationary, and geopolitical uncertainty, and achieve optimal outcomes from the insurance market.”