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Global Insurance Market Update

UK Pricing Q2 2022

Insurance pricing in the second quarter of 2022 in the UK increased 11%, compared to 20% in the first quarter.
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07/28/2022

Financial and professional lines pricing moderates

Insurance pricing in the second quarter of 2022 in the UK increased 11%, compared to 20% in the first quarter.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing rates increased 6%, compared to 9% in the first quarter.

  • Pricing was most challenging for clients with natural catastrophe (CAT) exposures and those in the food, waste, warehousing, and chemical industries.
  • There has been a noticeable absence of major CAT losses this year.
  • More clients with low/medium hazard risks experienced rate reductions.
  • Some insurers sought to offset challenging exposures by packaging property coverage with motor and casualty.
  • Underwriters demonstrated concern regarding valuation, putting focus on property damage and business interruption estimates.

Casualty insurance pricing increased 4%, compared to a 3% increase in the prior quarter.

  • Electric vehicles impacted the automobile liability insurance market, with leading insurers saying that damage repair costs for EVs run approximately 25% higher than for internal combustion vehicles.
  • Employers’ liability insurance pricing increased by 4%, compared to 3% in the prior quarter, driven by poor claims performance among some insureds.
    • US exposure remained a challenge.

Financial and professional lines pricing experienced a decline in some products, although the overall average rate increased due to the impact of continued increases in cyber insurance.

  • D&O pricing declined in the single digits in the second quarter.
    • The D&O market experienced substantial rate decreases on larger multinational accounts.
    • Midsize and smaller companies continued to experience rate increases or flat renewals.
  • The cyber insurance market continued to be challenging, although the rate of increase moderated to 68%, compared to 102% in the first quarter.
    • Some insureds continued to experience increases in the triple digits.
  • Pricing for financial institutions (FIs) continued to moderate as insurer competition increased.

Global Insurance Market Index – 2022 Q2

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Global Insurance Market Index

US Pricing

Insurance pricing in the second quarter of 2022 in the US increased 10%, compared to 12% in the prior quarter.
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Global Insurance Market Index

Latin America and Caribbean Pricing

Insurance pricing in the second quarter in the Latin America and Caribbean (LAC) region increased 5%, a decline from 6% in the prior quarter.
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Global Insurance Market Index

Continental Europe Pricing

Insurance pricing in the second quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of increase as in the first quarter.
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Global Insurance Market Index

Pacific Pricing

Insurance pricing in the Pacific region increased 7%, down from 10% in the prior quarter and the sixth consecutive quarterly reduction in rate increases.
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Global Insurance Market Index

Asia Pricing

Insurance pricing in the second quarter of 2022 in Asia increased 3%, the same as in the prior quarter.

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