UK Pricing Q3 2021 |Global Insurance Market Index

UK Pricing: Sixteenth Consecutive Quarter of Increases

Insurance pricing in the third quarter of 2021 in the UK increased 27%.

UK Insurance Pricing - Q3 2021

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing increased 11%.

Larger organizations generally experienced price increases ranging from 10% to 15%, which reflected a deceleration in the rate change compared to recent quarters.
Most renewals from insurers were less volatile than was the case in 2020 and the first half of 2021, in part a reflection of increased competition from alternative markets.
The claims environment remained challenging due to COVID-19 claims disputes concerning interpretation and application of policy wording.
Cyber and communicable disease restrictions continued to be applied to policies.

Casualty insurance pricing increased 7%.

Conditions were more volatile for excess of loss coverage. Scrutiny around sanctions, cyber, and COVID-19 were commonplace, meaning a longer timeframe and the provision of additional information remains vital to finalize a placement successfully.
Although the motor liability market pushed for increases in the first three quarters of 2021, competition increased for conventional private car and light commercial fleets.
The outlook for rate increases for the next renewal period remained stable.

Financial and professional lines pricing increased 54%, largely due to D&O liability.

D&O rate increases declined significantly, from 121% in the second quarter to 61% in the third as insurers showed increased appetite and competition.
The cyber insurance market continued to deteriorate, with capacity reducing and rates rising. Some clients experienced triple-digit increases in the quarter, driven largely by ransomware.
Financial institution (FI) clients generally saw smaller increases compared to previous quarters.
Commercial crime rates increased 50% to 60%, with a limited number of insurers writing this line.

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