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Global Insurance Market Update

Continental Europe Pricing Q1 2022

Insurance pricing in the first quarter of 2022 in Continental Europe (CE) increased 6%, compared to 9% in the fourth quarter of 2021.
Panarama of the mountains, snow and blue glacial ice of the Smeerenburg glacier, Svalbard, and archipelago between mainland Norway and the North Pole. An inflatable boat is anchored in the foreground.

Property and D&O lines continue to stabilize

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

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing in CE rose 6%, a decrease from 10% in the prior quarter.

  • CAT-exposed risks remained challenging and experienced the largest increases, though at a reduced level compared to prior quarters.
  • Competition for new business increased among European domestic carriers, leading to downward pressure on rates.
  • Insurers demonstrated an increased focus on adequacy of valuations, due to the challenging environment caused by rapidly rising inflation.
  • Despite softening of rates, insurers remain disciplined with respect to capacity deployment and aggregation.
  • Changes in wordings and an aggressive approach by carriers remained a challenge, especially with regard to application of additional war and sanctions exclusions in respect of the Russia-Ukraine conflict.

Casualty insurance pricing increased 6%, down from 7% in the fourth quarter of 2021. 

  • Rates showed signs of stabilization, but regional variation remains, with some territories experiencing double-digit rate increases.
  • Loss impacted renewals continued to be the most challenging, with insurers looking to restrict capacity.
  • Excess casualty and US-exposed placements remained challenging, with some countries in the region experiencing general liability pricing increases as high as 20%.
  • Insurers expressing particular concerns around social and general inflation and US auto market exposure; clients with large US auto fleets experienced significant price increases.
  • Some clients experienced increases in workers’ compensation, generally due to limited capacity.
  • Enhanced war and sanctions exclusions were imposed in respect of the Russia-Ukraine conflict.

Financial and professional lines pricing increased 9%, down from 13% in the prior quarter. 

  • The D&O market was affected by an influx of new capacity and an improvement in profitability leading to rate reductions on select programs with adequate pricing.
  • FI and professional liability pricing continued to moderate, with average increases of 9%. Insurers also demonstrated an appetite for new business.
  • Cyber remained an outlier, with a rate increase of 80% driven by capacity reductions and ransomware issues. Concerns about systemic exposures and accumulation risk persisted, resulting in cautious capacity deployment and risk selection, and increased information requirements. Clients continue to turn to self-retention captives.