Global Insurance Market Update

Pacific Pricing Q2 2022

Insurance pricing in the Pacific region increased 7%, down from 10% in the prior quarter and the sixth 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 first time since 2017

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

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing rates increased 5%, down from 8% in the prior quarter, despite severe flood events in Queensland and New South Wales.

  • Insureds in CAT zones, especially flood, faced increased underwriting focus, including on contingent business interruption, deductibles, and risk mitigation.
  • A demonstrable commitment to continual risk improvement was critical to renewal success.
  • Valuations have become a major underwriting focus for insurers due to global inflation.

Casualty insurance pricing rose 11%, down from 15% in each of the three prior quarters.

  • Insurers remained cautious due to claims inflation; with available capacity reduced, programs often experienced placement challenges.
  • Risk selection has been more pronounced than in the past.
  • Major programs underwent substantial restructuring of layers as a result of changing underwriter appetite.

Financial and professional lines pricing rose 6%, a decrease from 10% in the prior quarter.

  • The 5% decrease in pricing in the D&O market was the first reduction since 2017.
  • Competition continued to develop, particularly for excess layers, resulting in improved pricing.
  • Cyber insurance remained challenging, driven by frequent and severe ransomware losses.