Global Insurance Market Update

Continental Europe Pricing Q3 2022

Insurance pricing in the third quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of increase as in the prior two quarters

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.

Cyber insurance shows signs of stabilising

Insurance pricing in the third quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of increase as in the prior two quarters

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing in CE rose 5%, compared to 6% in the second quarter.

  • Insurer appetite increased as the overall rating environment improved.
  • There was increased interest from insurers to offer long-term agreements.
  • Conditions continued to depend on loss experience and risk quality.
    • Specific industries and risks found it more challenging to find capacity due to more restrictive underwriting guidelines.
  • Strict underwriting controls continued and insurers remained disciplined with respect to capacity deployment and aggregation, especially for contingent business interruption extensions.
  • Territorial exclusions continued for Ukraine, Belarus, and Russia.

Casualty insurance pricing increased 7%, the same as in the prior quarter and the thirteenth consecutive quarter of increases.

  • There was a continued reduction in capacity from key primary insurers.
  • Insurers increased pricing levels due to perceived inadequacy for risks with US exposure, or those in complex industries.
  • Excess casualty and US-exposed placements continued to be challenging, with general liability risk experiencing double-digit increases in several countries.
  • Some insurers reconsidered risk appetite, at times resulting in price increases or withdrawal of capacity, which particularly affected renewals with losses and in challenging sectors.
  • Insurers’ concerns continued regarding social and general inflation on US auto exposures, with significant price increases typical for clients with large US auto fleets.
  • Underwriter scrutiny continued for non-core extensions, such as product recall and medical malpractice.

Financial and professional lines pricing rose 6% in the third quarter.

  • Stability continued for D&O liability pricing due to increased capacity and competition from insurers; pricing remained generally flat to low-single digit increases.
    • Some primary insurers offered long-term agreements.
    • Competition was seen across all program layers.
    • Environmental, social, and governance (ESG) risk profiles continued to receive increased underwriter scrutiny.
  • For FIs, rate increases continued to moderate, and some clients experienced moderate reductions.
  • Crime renewal terms continued to stabilise.

Cyber insurance pricing increased 40%, compared to 50% in the second quarter, as new capacity entered the market.

  • Insurers continued to seek to increase retentions in many instances.
  • Underwriters continued to require detailed information on cyber risk controls, particularly regarding ransomware.
  • Insurer concerns continued around systemic exposures and accumulation risk.

Global Insurance Market Index – 2022 Q3

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