Global commercial insurance rates rise 9%, continuing moderating trend: Marsh

According to Global Insurance Market Index published by insurance broker Marsh.

Average price increases in most regions moderated due to slower rates of increase and some declines in some financial and professional lines, Marsh said.

Cyber ​​insurance pricing continued to increase significantly, although the pace of increase slowed during the quarter, to 79% in the US and 68% in the UK, from 110% and 102%, respectively, in the previous quarter.

The UK, with a composite price increase of 11% (compared to 20% in the first quarter of 2022), saw the largest decline in average price increases.

In the United States, prices increased by 10% (vs. 12% in Q1 2022), in the Pacific by 7% (vs. 10%), in Latin America and the Caribbean by 5% (vs. 6%), in Asia by 3% and Continental Europe by 6% (both the same as the previous quarter).

Among other findings, the Marsh Inquiry noted:

  • Global property insurance rates increased by 6% on average in the second quarter of 2022, compared to an increase of 7% in the first quarter of 2022.
  • General insurance pricing increased by 6% on average, compared to 4% in the previous quarter.
  • Overall pricing for financial and professional lines, driven by cyber, again recorded the highest rate of increase among the main insurance product categories, at 16%. However, this is down from 26% in the prior quarter.
  • Directors’ and officers’ insurance rates declined in the US, UK and Pacific.
  • The adequacy of valuations for insured or replacement values ​​has become a focal point for insurers, driven by concerns about inflation, supply chains and labor shortages, as well as inflation of claims in cases where the amounts of adjusted losses exceed the declared values.
  • In the United States, customers experiencing significant losses or exposed to secondary disaster risk – including wildfires, convective storms and storm flooding – generally saw above-average increases.

“At a time of global trade uncertainty, driven by the ongoing war in Ukraine, supply chain disruption and rising inflation, trading conditions remain challenging for many customers. We are also seeing the impact of rising inflation on insured values ​​and exposure growth, which can impact insurer pricing and appetite,” commented Lucy Clarke, President, Marsh Specialty and Global Placement, Marsh, in a statement.

Source: Marsh

Topics
Business Insurance Trends Business Insurance Rate Trends

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