Global Insurance Market Index

US Pricing Q3 2021

Insurance pricing in the third quarter of 2021 in the US increased 14%, year-over-year

US Pricing: Increases Continue, Led by Cyber

Insurance pricing in the third quarter of 2021 in the US increased 14%, year-over-year. This was a slight rise in the rate of increase following three consecutive quarters of a declining rate of increase.

US Insurance Pricing - Q3 2021

Property insurance pricing increased by 10%, the sixteenth consecutive quarter of increase.

  • The quarter’s slight uptick in rate change from the second quarter was partly driven by fewer renewals compared to other quarters, as well as the type of industries that generally renew in the third quarter, including manufacturing and other more technical risks.
  • Clients that had experienced significant losses, were considered to have relatively poor risk quality, or had significant exposure to secondary catastrophe (CAT) perils experienced above average rate increases. Clients with no losses, good risk quality, and were in a sought-after industry class had a better experience.
  • More than ever, insurers focused on secondary CAT perils - including wildfire, convective storm, and flood.
  • The market deteriorated for clients predominantly exposed to wildfire, a trend that is expected to continue.
  • Carriers scrutinized contingent time element coverage, especially for unnamed suppliers, following several large per-risk losses.
  • Insurers continued to push for tighter terms and conditions, including deductibles, cyber and communicable disease exclusions, and time element extensions.

Constant bar chart represents Global Insurance Composite Pricing Change.

Casualty insurance pricing in the US increased 6%; excluding workers’ compensation the increase was 11%.

  • Workers’ compensation continued to be the driving factor of competition among primary carriers, which would typically agree to lower rate increases on the general liability (GL) and auto lines as long as the WC line was profitable.
  • GL remained an area of concern for insurers, driven by the continued rise in settlements and jury verdicts.
  • In excess liability, clients generally experienced a continued deceleration in rate increases as compared to earlier quarters, driven by market competition.

Financial and professional lines pricing increased 27%, largely driven by cyber insurance.

  • D&O pricing for publicly traded companies increased 10%, lower than the 15% increase observed in the second quarter and the lowest since the first quarter 2019.
    • Results showed the positive impact from new capacity in the US, Bermuda, and UK, most of which is focused on mid- to high-excess D&O layers.
    • Many clients experienced a retention increase of greater than 50%; premiums still increased with these changes.
    • Lead Side A D&O pricing stabilized, with single-digit increases on most renewals.
    • Challenges continued for renewals within certain industry segments, including life science, technology, and specialty retail; companies that are financially constrained; companies with prior or current claims; and initial public offerings, special purpose acquisition companies, and de-SPACs.

Marsh Morocco an insurance broker incorporated under Law No. 17-99 on the insurance code with a capital of 1,500,000 MAD.

Ministry of Finance Authorization No. C1430CA2022173 of March 28, 2022