International Media Relations Manager / Head of Media Relations, UK & Ireland+44 (0)79 9080 2830
New York | February, 02, 2022
Global commercial insurance prices increased 13% in the fourth quarter of 2021, according to the Global Insurance Market Index released today by Marsh, the world’s leading insurance broker and risk advisor, continuing a trend of moderating rate increases that began in Q1 2021. While this is the 17th consecutive quarter of increases, the rate of increase continues to moderate in many lines of business and in most geographies.
Pricing increases across most regions moderated due to a slower rate of increase in property insurance and directors and officers liability (D&O). The UK, with a composite pricing increase of 22% (down from 27% in Q3), the US, where prices increased 14% (steady from the previous quarter) and the Pacific region, with a 13% increase (down from 17% in Q3) continued to drive the global composite rate. The rate of increase in Asia was 4% (down from 6%) and 9% in Continental Europe (down from 10%). The one exception to the moderating trend was Latin America and the Caribbean where rates increased by 4% (up from 2% the previous quarter).
Among other findings, the survey noted:
Commenting on the report, Lucy Clarke, President, Marsh Specialty and Marsh Global Placement, said: “We are operating in a challenging risk and insurance market and will continue to focus on developing solutions in classes such as cyber, which will continue to be difficult for both clients and insurers. More broadly, however, we expect continued moderation in rate increases through 2022, a trend which will be welcomed by our clients.”
Marsh is the world’s leading insurance broker and risk advisor. With around 40,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services. Marsh is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue over $18 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. For more information, visit mmc.com, follow us on LinkedIn and Twitter or subscribe to BRINK.