Skip to main content

Global Insurance Market Update

Continental Europe Pricing Q4 2022

Insurance pricing in the fourth quarter in Continental Europe (CE) increased 6%, the same rate of increase as in the prior three 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 pricing moderates

Insurance pricing in the fourth quarter in Continental Europe (CE) increased 6%, the same rate of increase as in the prior three quarters.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing rates in CE rose 7%, compared to 5% in the prior quarter.

  • Hurricane Ian and other catastrophe losses created uncertainty around capacity and put upward pressure on CAT pricing.
  • The inflationary environment also drove property pricing increases, especially where asset values were deemed inadequate.
  • Terms and conditions and capacity continued to be bifurcated in areas including CAT-exposed and non-CAT-exposed; loss-hit and loss-free; and high hazard and low hazard.
  • Insurers continued to show discipline around terms and conditions including deductibles, non-physical damage, cyber, and communicable disease exclusions, as well as territorial exclusions for Russia, Belarus, and Ukraine.
  • Contingent business interruption (CBI) extensions were under scrutiny as supply chain disruption, higher energy costs, and labor shortages continued to drive claim costs higher.

Casualty insurance pricing increased 6% in the fourth quarter, compared to 7% in the prior quarter, marking the fourteenth consecutive quarter of increase.

  • The reduction in capacity from key primary markets continued.
  • Markets increased pricing for risks with US exposure, for complex industries, and where current pricing was considered inadequate.
  • Insurers continued to express concerns regarding social and general inflation on US auto liability exposures.
  • Clients with large US auto fleets continued to see significant pricing increases, as well as increases in attachment points for US auto excess coverage. 

Financial and professional lines pricing rose 2%, compared to 6% in the prior quarter.

  • D&O liability pricing was stable, with some reductions due to increased competition from insurers, entrance of additional capacity, and increased appetite to write more business given the slowdown in IPO and special purpose acquisition companies (SPAC) deals.
    • Underwriters continued to increase focus on environmental, social, and governance (ESG) issues.
  • The FI space was generally stable, with some reductions and low single-digit increases depending on risk profile and loss history.
  • Professional indemnity and crime coverage renewal terms began to stabilize.

Cyber insurance pricing increases moderated to 13%, as new capacity entered the market.

  • Factors driving cyber pricing included fewer claims around privacy in Europe, a decrease in ransomware claims frequency and severity since the second half of 2021, insurers looking to maintain share and grow their cyber business in 2023, and new capacity entering the market.
  • Retentions tended to be stable in the quarter.
    • Good risk profiles generated appetite from insurers, leading to increased capacity and the removal of restrictions on ransomware.

Global Insurance Market Index – 2022 Q4

This document and any recommendations, analysis, or advice provided by Marsh (collectively, the ‘Marsh Analysis’) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 22/030