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Global Insurance Market Update

Pacific Pricing Q2 2022

Insurance pricing in the Pacific region increased 7%, down from 10% in the prior quarter and the sixth consecutive quarterly reduction in rate increases.

January 10, 2019. Sydney, Australia. Landscape aerial view of Sydney Opera house near Sydney business center around the harbour.

28/07/2022

D&O pricing declines for first time since 2017

Insurance pricing in the Pacific region increased 7%, down from 10% in the prior quarter and the sixth consecutive quarterly reduction in rate increases.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing rates increased 5%, down from 8% in the prior quarter, despite severe flood events in Queensland and New South Wales.

  • Insureds in CAT zones, especially flood, faced increased underwriting focus, including on contingent business interruption, deductibles, and risk mitigation.
  • A demonstrable commitment to continual risk improvement was critical to renewal success.
  • Valuations have become a major underwriting focus for insurers due to global inflation.

Casualty insurance pricing rose 11%, down from 15% in each of the three prior quarters.

  • Insurers remained cautious due to claims inflation; with available capacity reduced, programs often experienced placement challenges.
  • Risk selection has been more pronounced than in the past.
  • Major programs underwent substantial restructuring of layers as a result of changing underwriter appetite.

Financial and professional lines pricing rose 6%, a decrease from 10% in the prior quarter.

  • The 5% decrease in pricing in the D&O market was the first reduction since 2017.
  • Competition continued to develop, particularly for excess layers, resulting in improved pricing.
  • Cyber insurance remained challenging, driven by frequent and severe ransomware losses.

Global Insurance Market Index – 2022 Q2

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Global Insurance Market Index

US Pricing

Insurance pricing in the second quarter of 2022 in the US increased 10%, compared to 12% in the prior quarter.
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Global Insurance Market Index

UK Pricing

Insurance pricing in the second quarter of 2022 in the UK increased 11%, compared to 20% in the first quarter.
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Global Insurance Market Index

Latin America and Caribbean Pricing

Insurance pricing in the second quarter in the Latin America and Caribbean (LAC) region increased 5%, a decline from 6% in the prior quarter.
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Global Insurance Market Index

Continental Europe Pricing

Insurance pricing in the second quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of increase as in the first quarter.
beautiful nanpu bridge at dusk,crosses huangpu river,shanghai,China

Global Insurance Market Index

Asia Pricing

Insurance pricing in the second quarter of 2022 in Asia increased 3%, the same as in the prior quarter.

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any modelling, analytics, or projections are subject to inherent uncertainty, and any Marsh analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. LCPA 22/326.