Global commercial insurance prices increased 4% in the fourth quarter of 2022, down from a 6% increase in the third quarter and a 9% increase in the second quarter, according to the Global Insurance Market Index released by insurance broker and risk advisor Marsh.

The report said this continues a trend of moderating increases that began in Q1 2021. While this is the 21st consecutive quarter of increases, pricing increases moderated in most regions with the exception of financial and professional lines, which decreased for only the second time since Q3 2017.

Pricing increases across most regions moderated or remained the same due to an overall decrease in certain financial and professional lines, most notably directors and officers insurance. In the U.S., composite pricing increased by 3%, down from 5% in Q3 of 2022, while rates in the U.K. were up by 4%, down from a 7% increase in Q3. Rates increased in the pacific region by 5%, in Asia by 2%, and in continental Europe by 6%. In Latin America and the Caribbean, prices rose by 7%.

Among other findings, the survey noted that global property insurance pricing was up 7% on average in the fourth quarter of 2022 compared to a 6% increase in the previous quarter. Casualty pricing was up 3% on average compared to 4% in Q3.

For the second consecutive quarter, overall pricing in financial and professional lines fell. Driven by further rate reductions in the U.S., U.K. and Australia, average pricing declined by 6% in Q4 compared to a 1% decrease in Q3.

Globally, cyber insurance pricing increased 28% in Q4 2022 compared to a 53% increase in Q3. In the largest cyber insurance markets, the rate of increase continued to moderate significantly with prices rising by 28% in the U.S. and 34% in the U.K. compared to 48% and 66%, respectively, in the prior quarter.

Concerns about the impact of inflation on asset values and claims costs continued to be a focal point for insurers at renewal in most regions.

“After a challenging 2022, our clients will continue to face a tough operating environment in 2023,” said Lucy Clarke, president of Marsh Specialty and Global Placement, in a company press release. “With a slowdown in the global economy, in addition to ongoing inflation and geopolitical tensions, many clients face significant headwinds.”

Source: Marsh