Insurance pricing in the Pacific region increased 10% in the first quarter of 2022, down from 13% in the prior quarter. This also marked the fifth consecutive quarterly reduction in rate of increase. This quarter, average price increases in the Pacific region were one percentage point lower than the global average in the Marsh Global Insurance Market Index*.
The index showed overall global commercial insurance prices rose 11% in the first quarter of 2022, marking the fifth consecutive reduction in rate increase since global pricing increases peaked at 22% in the fourth quarter of 2020.
Geographically, the UK, with a composite pricing increase of 20%, drove the global composite rate alongside the US and the Pacific regions, which both had rates in double figures (12% and 10% respectively). In the Pacific region:
Pricing increases were again seen across all geographies, though there was significant moderation in nearly all markets. Regionally, composite pricing increases for the first quarter of 2022 were as follows (see Figure 1):
Pricing in financial and professional lines again had the highest rate of increase across the major insurance product categories:
It is important to note that reported pricing changes are averages and that the data used to estimate the changes cover a wide range of clients in terms of size, industry, location, claims history, and other parameters. Many clients received pricing changes that deviated from the average.
We invite you to read the full Global Insurance Market Index Fourth Quarter 2021.
If you would like more information about pricing or other risk and insurance issues, please reach out to your Marsh representative.
*Note: All references to pricing and pricing movements in this report are averages, unless otherwise noted. For ease of reporting, we have rounded all percentages regarding pricing movements to the nearest whole number.
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