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Global Insurance Market Update

Pacific Pricing Q1 2022

Insurance pricing in the Pacific region increased 10%, down from 13% in the prior quarter and the fifth consecutive quarterly reduction in rate increase.

25/04/2022

Flood losses spur rate of increases

Insurance pricing in the Pacific region increased 10%, down from 13% in the prior quarter and the fifth consecutive quarterly reduction in rate increase.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing increased 8%, mirroring the rate increase in the fourth quarter of 2021.

  • The near AU$3 billion market loss from the New South Wales and Queensland floods curtailed any pricing relief expected for the start of the year
  • Challenges have increased for risks in CAT zones, with flood a particular concern.
  • Clients experienced an increased underwriting focus on CAT sub-limits, including contingent business interruption, deductibles, and risk mitigation.

Casualty insurance pricing rose 15%, the same rate of increase for the third consecutive quarter.

  • Pricing in the casualty market remained challenging, due in large measure to claims inflation and reduced capacity from some major carriers.
  • Risk selection continues to be more pronounced than in previous quarters.
  • Changing underwriting appetite continues to spur substantial restructuring of layers for some major programs.

Financial and professional lines pricing rose 10%, a decrease from 18% in the prior quarter.

  • The levelling out of pricing in D&O programs continued.
  • Competition among insurers, particularly for excess layers, continued to improve pricing for some clients.
  • Professional indemnity premiums again increased as capacity continued to tighten.
  • Cyber risk insurance remained challenging, mainly due to frequent and severe ransomware losses that put pressure on pricing and deductibles and brought a marked reduction in capacity and narrowing of key coverages.

Global Insurance Market Index – 2022 Q1

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Global Insurance Market Index

US Pricing

Insurance pricing in the first quarter of 2022 in the US increased 12% — a slight reduction on the same rate of increase compared to the prior two quarters.

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Global Insurance Market Index

UK Pricing

Insurance pricing in the first quarter of 2022 in the UK increased 20%, compared to 22% in the fourth quarter of 2021.

Global Insurance Market Index

Latin America and Caribbean Pricing

Insurance pricing in the first quarter in the Latin America and Caribbean (LAC) region increased 6%.

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Global Insurance Market Index

Continental Europe Pricing

Insurance pricing in the first quarter of 2022 in Continental Europe (CE) increased 6%, compared to 9% in the fourth quarter of 2021.

beautiful nanpu bridge at dusk,crosses huangpu river,shanghai,China

Global Insurance Market Index

Asia Pricing

Insurance pricing in the first quarter of 2022 in Asia increased 3%, down from 4% in the prior quarter, as price increases continue to moderate.