Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • News

Commercial insurance prices increase 15% worldwide

Open-access content Wednesday 27th October 2021 — updated 9.25am, Thursday 28th October 2021
Commercial insurance prices increase 15% worldwide

Global commercial insurance prices increased by 15% in the third quarter of 2021, driven by substantial growth in cyber insurance rates, research by Marsh has found.

While this is the 16th consecutive quarter of increases, the rate of growth continues to moderate in many lines of business and in most geographies, according to Marsh's latest Global Insurance Market Index.

Property insurance pricing was up 9% on average in the third quarter, down from a 12% increase in the first quarter 2021, while casualty pricing was up 6%, which was the same as in the previous two quarters.

Pricing in financial and professional lines again had the highest rate of increase across the major insurance product categories, at 32%, compared to 34% in the previous quarter.

Cyber insurance pricing continued to diverge from the moderation trend, driven by increasingly frequent and severe ransomware claims. In the US, prices increased by 96%, up from 56% in the second quarter, and by 73% in the UK, up from 35% in the previous three months.

Overall, Marsh said that the latest trends suggest that pricing increases may have peaked in the fourth quarter of 2020, at 22%.

“While the risk and insurance landscape remains challenging around the world, we expect rates to continue to moderate in most lines,” said Lucy Clarke, president at Marsh Specialty and Marsh Global Placement. “However, the pressure on rates in cyber insurance is likely to continue.”

Pricing increases across most regions moderated due to a slower rate of increase in property insurance and directors’ and officers’ liability. 

The UK, with a composite pricing increase of 27%, down from 28% in the previous quarter, and the Pacific region, with a 17% increase, down from 23%, continued to drive the global composite rate. 

The rate of increase in Asia was 6%, steady from the previous quarter, 2% in Latin America and the Caribbean, down from 4%, and 10% in Continental Europe, down from 13%.

The one exception was the US, where rates increased by 14%, up from 12% the previous quarter, driven by substantial increases in cyber insurance rates and a moderate increase in property and casualty rates.

Clarke said that developing solutions for Marsh's clients in the cyber insurance segment “remains a top priority”.

 

Image credit: iStock

Author: Chris Seekings

Filed in:
News
Topics:
Global
Finance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ