Global Insurance Market Update

Pacific Pricing Q3 2022

Insurance pricing in the Pacific region increased 5%, down from 7% in the prior quarter and the seventh consecutive quarterly reduction in rate increases

January 10, 2019. Sydney, Australia. Landscape aerial view of Sydney Opera house near Sydney business center around the harbour.

D&O pricing declines for second consecutive quarter

Insurance pricing in the Pacific region increased 5%, down from 7% in the prior quarter and the seventh consecutive quarterly reduction in rate increases

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing increased 4%, down from 5% in the prior quarter.

  • Severe flood events in Queensland and New South Wales earlier in the year — with an estimated insured loss greater than $AUD6 billion — has increased the focus on storm/flood risk mitigation, deductible adequacy, and sub-limits.
  • Underwriters continued to focus on general CAT and secondary CAT perils.
  • Commitment to continual risk improvement is critical to renewal success. Insurers also focused on current valuations supporting declared values.

Casualty insurance pricing rose 10%, down from 11% in the prior quarter.

  • Insurers demonstrated continued caution due to claims inflation resulting from litigation trends, as well as inflation in material cost.
  • Some major programs underwent substantial restructuring of layers as a result of changing underwriter appetite.

Financial and professional lines pricing rose 4%, a decrease from 6% in the prior quarter.

  • D&O pricing continued to decline; other financial and professional lines pricing increases continued to moderate.
  • Competition continued to develop, particularly for excess layers, resulting in improved pricing.

Cyber insurance remained challenging; however, it began to stabilise in the quarter as insurers sought to grow their business in this area.

  • Ransomware continued to dominate the claims environment.

Global Insurance Market Index – 2022 Q3

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any modelling, analytics, or projections are subject to inherent uncertainty, and any Marsh analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. LCPA 22/464.

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.”