Global commercial insurance prices increased by 13% in the fourth quarter of 2021, down from growth of 15% over the previous three months, research by Marsh has found.
While this is the 17th consecutive quarter of increases, prices have continued to moderate since the first quarter of last year across many lines of business and geographies, according to Marsh's latest Global Insurance Market Index.
Pricing increases across most regions moderated in the last quarter due to a slower rate of increase in property insurance and directors and officers liability (D&O).
The UK recorded a composite pricing increase of 22%, down from 27% in third quarter of 2021, while prices in the US held steady with growth of 14%.
Prices increased by 13% in the Pacific region, down from 17% previous quarter. The rate of increase in Asia was 4%, and 9% in Continental Europe, down from 6% and 10%, respectively.
The one exception to the moderating trend was in Latin America and the Caribbean, where rates increased by 4%, up from 2% in the previous quarter.
Commenting on the findings, president at Marsh Specialty and Marsh Global Placement, Lucy Clarke, said: “We are operating in a challenging risk and insurance market and will continue to focus on developing solutions in classes such as cyber, which will continue to be difficult for both clients and insurers.
“More broadly, however, we expect continued moderation in rate increases through 2022, a trend which will be welcomed by our clients.”
Global property insurance pricing was up 8% on average in the last quarter, down from a 9% increase over the previous three months. Casualty pricing was up 5% on average, down from 6% in the previous two quarters.
Pricing in financial and professional lines, driven by cyber, again had the highest rate of increase across the major insurance product categories, at 31%, compared to 32% in the previous quarter.
Cyber insurance rates continued to rise driven largely by the continued increase in the frequency and severity of ransomware claims with many insurers seeking to tighten coverage terms and conditions.
Prices increased by 130% in the US, up from 96% in the third quarter of 2021, and by 92% in the UK, up from 73%.
Image credit: iStock
Author: Chris Seekings