UK Pricing: Increases in All Major Coverage Areas Decelerate
Insurance pricing in the fourth quarter of 2021 in the UK increased 22%, compared to 27% in the third quarter.
Constant bar chart represents Global Insurance Composite Pricing Change.
Property insurance pricing increased 10%, compared to 11% in the third quarter.
Loss activity through 2021, as well as rising reinsurance treaty costs contributed to pricing increases.
Capacity was abundant for industry sectors sought after by insurers, while those perceived as challenging, including the food, timber, chemicals, and waste sectors, did not experience an influx of capacity or competition.
Insurers continued to push cyber and communicable disease restrictions.
Casualty insurance pricing increased 4%, compared to a 7% increase in the prior quarter.
Employers liability pricing reflected the influence of competition for large and high-profile primary placements that had not been marketed for several years.
The motor liability market experienced increased competition for conventional private car and light commercial fleets, which in some cases resulted in rate reductions.
Financial and professional lines pricing increased 43%, a decline from the 54% rise seen in the prior quarter.
The rate of increase for D&O was 24% in the fourth quarter, compared to 61% in the third quarter, due primarily to increased capacity.
A year after the departure of some major insurers from the London market, most of their capacity has been replaced, although limits generally remained lower.
Cyber insurance pricing increased by 92%, driven by ransomware claims.
Financial institutions experienced a slowing of pricing increases, with more new entrants and an increase in incumbent insurers growing their business.
Commercial crime coverage pricing increased 30% to 40%.