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
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • 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

You may also be interested in...

International Sustainability Standards Board launched

International Sustainability Standards Board launched

The IFRS Foundation has announced the formation of an International Sustainability Standards Board (ISSB) to mark finance day at the COP26 climate summit in Glasgow.
Wednesday 3rd November 2021
Open-access content
COP26 roundup

COP26 roundup

The Glasgow Climate Pact was agreed on the final day of COP26 last Saturday, concluding two weeks of negotiations that will set the global agenda on climate change for the next 10 years.
Wednesday 17th November 2021
Open-access content
InsurTech investment passes $10bn threshold for first time

InsurTech investment passes $10bn threshold for first time

Insurance technology start-ups have attracted more than $10bn (£7.3bn) of investment for the first time in any one year on record, with three months still left to go.
Wednesday 27th October 2021
Open-access content
TCFD sees record growth in climate disclosures

TCFD sees record growth in climate disclosures

The number of companies reporting in line with recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) increased more between 2019 and 2020 than in any other year.
Wednesday 20th October 2021
Open-access content
World's largest money managers see assets hit new record high

World's largest money managers see assets hit new record high

The world's 500 largest money managers have seen their assets grow to a new record high, despite challenges brought on by COVID-19, analysis by the Thinking Ahead Institute has found.
Tuesday 19th October 2021
Open-access content
Third-party cyber risks a 'glaring blind spot' for most companies, PwC finds

Third-party cyber risks a 'glaring blind spot' for most companies, PwC finds

The majority of large companies worldwide do not have a handle on third-party cyber risks in their supply chains, research by PricewaterhouseCoopers (PwC) has uncovered.
Wednesday 13th October 2021
Open-access content

Latest from Global

rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
ULH

Growth of the profession in Zambia

One of only three Fellows in Zambia, Mulenga C Mutati anticipates exciting growth in the country’s actuarial sector
Wednesday 1st February 2023
Open-access content
cj

Natural capital investing

Chris Howells and Andrew Dreaneen discuss how today’s investments in natural capital profit portfolios as well as the planet and humanity
Wednesday 1st February 2023
Open-access content

Latest from News

tf

New online forum 'IFoA communities' – now live

IFoA communities is your new online digital community. Here’s how to get started on the platform
Thursday 2nd March 2023
Open-access content
uh

Climate risk course sees new growth

In April, the Climate Risk and Sustainability course will be one year old. During its first year, we welcomed 155 participants and awarded 148 certificates. Members from more than 19 countries came together at the seminars to discuss and share what they had learnt.
Wednesday 1st March 2023
Open-access content
uh

Actuarial Profession Standard Z1: have your say

The IFoA is consulting on proposals to introduce a revised Actuarial Profession Standard (APS) Z1 on ‘Duties and responsibilities of members undertaking work in relation to UK trust-based pre-paid funeral plans’. APS Z1 sets out specific ethical and professional obligations that apply, in addition to the Actuaries’ Code, for members providing advice relating to funeral plan trusts.
Wednesday 1st March 2023
Open-access content

Latest from Finance

IFoA issues Risk Alert on high inflation

IFoA issues Risk Alert on high inflation

The Institute and Faculty of Actuaries (IFoA) has issued a Risk Alert to all its members on the impact of high inflation, with a particular focus on actuaries working in general and life insurance and pensions.
Wednesday 7th September 2022
Open-access content
Cost-of-living crisis could slash pensions by quarter

Cost-of-living crisis could slash pensions by quarter

The youngest UK workers could see their retirement savings cut by a quarter if they were to reduce their pension contributions by 2% in response to the cost-of-living crisis.
Wednesday 24th August 2022
Open-access content
Rising inflation to hurt profitability of European insurers

Rising inflation to hurt profitability of European insurers

General insurers can expect slower premium growth in Europe over the next three years as rising inflation impacts the ability of policyholders to pay higher prices, new analysis suggests.
Wednesday 24th August 2022
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Pricing Trading Manager - Contract

£700 - £1000 per day
Reference
148579

Head of Financial Risk

Flexible / hybrid working with minimum 2 days p/w office-based
£ excellent package
Reference
148578

Insurance Risk Leader

Flexible / hybrid with 2 days p/w office-based
£ to attract the best
Reference
148577
See all jobs »
 
 
 
 

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

© 2023 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