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Global Insurance Market Update

Continental Europe Pricing Q2 2022

Insurance pricing in the second quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of increase as in the first quarter.
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 stabilise

Insurance pricing in the second quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of increase as in the first quarter.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing rates in CE rose 6%, as insurer competition, particularly for insureds with low levels of loss, put downward pressure on rates.

  • Insurer interest in offering long-term agreements increased.
  • Inflation concerns caused insurers to increase focus on adequacy of valuations for insured or replacement values.
  • Insurers maintained strict underwriting controls and discipline regarding capacity deployment and aggregation issues, especially for contingent business interruption extensions.

Casualty insurance pricing increased 7%, compared to 6% in the first quarter.

  • Pricing increases were limited by insurer competition for new business.
  • Loss-impacted renewals were most challenging, with insurers restricting capacity deployed on individual programs.
  • Insurers demonstrated continued concern about US exposures due to severity of losses and jury awards.
  • Insurers focused on exclusionary language, for example cyber, chemical substances, war and sanctions, climate change litigation, and sexual abuse and molestation.
  • Auto liability pricing increased, by double digits in some territories.

Financial and professional lines pricing moderated, increasing 5% in the second quarter, down from 9% in the prior quarter.

  • Stability in the D&O space continued due to increased competition from insurers and new capacity.
  • FIs continued to experience moderating increases; in some cases pricing was flat to moderate reductions.
  • Cyber insurance pricing increased by 50%, compared to 80% in the prior quarter.
  • Concerns around systemic exposures and accumulation risk continued to grow, with the war in Ukraine a particular concern.

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