Global commercial insurance prices continued to moderate through the third quarter of 2022, with increases slowing to 6%, down from 9% in the second quarter.
Marsh’s Global Insurance Market Index marks Q3 2022 as the 20th consecutive quarter of commercial rate increases, but it also shows that growth has been faltering since Q1 this year.
Pricing increases across most regions moderated due to an overall decrease in certain financial and professional lines, most notably directors and officers insurance.
The US, with a composite pricing increase of 5%, experienced the largest moderation in average price increases, falling from a growth rate of 10% in Q2.
Meanwhile, rate increases slowed from 11% to 7% in the UK, from 7% to 5% in the Pacific region, and from 3% to 2% in Asia, staying the same in Latin America and the Caribbean at 5%, and at 6% in Continental Europe.
Marsh’s survey noted that global property insurance pricing was up 6% on average in the third quarter of 2022, the same level as the previous quarter, while casualty pricing was up 4% on average, compared to 6% in the previous quarter.
Cyber insurance pricing continued to outshine other lines with increases of 53% recorded through Q3, although even here increases were see to moderate, with prices rising by 48% in the US and 66% in the UK, compared to 79% and 68%, respectively, in the prior quarter.
The exclusion of cyber meant that, for the first time since 2017, overall pricing in financial and professional lines fell by 1% in Q3, compared to a 16% increase in Q2, driven by decreases in the US, UK and Australia and moderating rates of increase elsewhere.
The global business environment remains tough for clients. Ongoing inflation and geopolitical instability are affecting all sectors and we expect even more challenging conditions in the already strained property catastrophe market following Hurricane Ian.