Press Release

Global commercial insurance pricing up 15% in third quarter of 2021

Cyber rates continue to rise on increased losses.

New York | October, 26, 2021

Global commercial insurance prices increased 15% in the third quarter of 2021, according to the Global Insurance Market Index released today by Marsh, the world’s leading insurance broker and risk advisor, the same rate of increase recorded in the previous quarter. While this is the 16th consecutive quarter of increases, the rate of increase continues to moderate in many lines of business and in most geographies. This trend may suggest that pricing increases peaked in the fourth quarter of 2020, at 22%.

Pricing increases across most regions moderated due to a slower rate of increase in property insurance and directors’ and officers’ liability (D&O). The UK, with a composite pricing increase of 27% (down from 28% in Q2 2021) and the Pacific region, with a 17% increase (down from 23% in Q2 2021) continued to drive the global composite rate. The rate of increase in Asia was 6% (steady from the previous quarter), 2% in LAC (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.

Among other findings, the survey noted:

  • Global property insurance pricing was up 9% on average, down from a 12% increase in the first quarter 2021; casualty pricing was up 6% on average, which was the same as 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. In the US prices increased 96% in the US (up from 56% in Q2), and 73% in the UK (up from 35% in Q2), driven by the frequency and severity of ransomware claims.

Commenting on the report, Lucy Clarke, President, Marsh Specialty and Marsh Global Placement, said: “While the risk and insurance landscape remains challenging around the world, we expect rates to continue to moderate in most lines. However, the pressure on rates in cyber insurance is likely to continue. Developing solutions for our clients in this segment remains a top priority for Marsh.”

About Marsh

Marsh is the world’s leading insurance broker and risk advisor. With around 40,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services. Marsh is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue over $18 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. For more information, visit mmc.com, follow us on LinkedIn and Twitter or subscribe to BRINK.

Media contacts

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”