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Global Insurance Market Index

Pacific pricing Q3 2023

Insurance pricing in the Pacific region increased 1% in the third quarter, compared to 2% in the prior quarter. Marsh's latest Global Insurance Market Index tracks insurance pricing trends by region and insurance lines.
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30/10/2023

Pacific insurance markets: Financial and professional lines continue to drive overall pricing moderation, while NZ property pricing remains out of step with rest of local region

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, some higher and some lower. 

Insurance pricing across all lines in the Pacific region increased 1% in the third quarter, compared to 2% in the prior quarter.  

Globally, average pricing increase in the third quarter was 3%, the same as in the prior quarter according to the Marsh Global Insurance Market Index*.

Pacific Insurance Pricing in Q3 2023

Property insurance pricing in the Pacific increased 2%, compared to 5% in the prior quarter, with loss impacted and CAT-exposed clients again seeing higher increases.

  • New Zealand pricing increases remain out of step with the rest of the region. Whilst rate appreciation appears to have moderated since the first half of the year, some clients are still experiencing double-digit rate rises. A continued focus on natural catastrophe exposed regions and flood impacted locations remains prevalent. 

  • Underwriters remained cautious, making it essential at renewals that declared values be supported by formal valuations and/or adequate inflation loadings.

  • In New Zealand, the emergence of flood risk, primarily during the first quarter weather events, has led to higher scrutiny by underwriters of coverage, pricing, and insurers’ own loss modelling.  

  • Some positive signs emerged for insureds as competition returned with the introduction of capacity. 

  • Building inflation within New Zealand remains high, but seems to have peaked, which may help alleviate pressure on underwriter capacity going forward. 

Casualty/liability insurance pricing rose 5%, compared to 7% in the prior quarter.

  • Risk selection and pricing adequacy continued to be critical, with varied results for higher hazards sectors, particularly on excess lines.

  • Insurers focused on social inflation resulting from litigation trends and material costs.

  • New capacity in the market fostered increased competition.

Financial and professional lines pricing decreased 5%, after declining 8% in the prior quarter.  

  • D&O pricing continued to decline across the region, generally decreasing by 10% or more in New Zealand. 

  • Insurers remained sensitive to underwriting information and continued to be cautious around certain industries and insureds with claims.

  • Competition remained strong for primary and excess layers from both new insurers and legacy carriers.

  • Professional indemnity pricing continued to rise in New Zealand, increasing by 3% this quarter. Again, insurers were sensitive to underwriting information and insureds with claims. 

  • Use of generative artificial intelligence is being monitored for potential claims trends.

Cyber insurance pricing increased 6%, compared to 8% in the prior quarter.

  • Improved competition from insurers led to more coverage and retention options for clients, such as increased limits, decreased retentions, and improved pricing for a similar policy structure.

  • Insurers focused on critical risk, dynamic privacy regulations, and the continued threat of ransomware.

  • Risk management remained important, particularly regarding the ability of clients to mitigate ransomware threats. 

  • In New Zealand, insurers remain selective about the risks they write. 

Constant bar chart represents global insurance composite pricing change.

Global insurance pricing

Across the regions, composite pricing changes for the third quarter were as follows: 

  • US: +4%

  • UK: -1%

  • Canada: -1%

  • Europe: +4%

  • Latin America and the Caribbean: +10%

  • Asia: +1%

  • Pacific: +1%

  • India, Middle East, and Africa: +3%

Globally, pricing changes for the four major product lines were as follows:

  • Property insurance: +7%

  • Casualty insurance: +3%

  • Financial and professional lines insurance: -6% 

  • Cyber insurance: -2%%

We invite you to read the full Global Insurance Market Index Third Quarter 2023. (Download below.) If you would like more information about pricing or other risk and insurance issues, please reach out to your Marsh representative.

*Note: For ease of reporting, we have rounded all percentages regarding pricing movements to the nearest whole number.

 

 

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Global Insurance Market Index

04/24/2024

The Global Insurance Market Index is our proprietary measure of global commercial insurance premium pricing change at renewal, providing insights on the world's major insurance markets.
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Global Insurance Market Index

US pricing Q3 2023

10/30/2023

Insurance pricing in the third quarter of 2023 in the US increased by 4%, the same as in the prior two quarters.

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Global Insurance Market Index

Latin America and Caribbean pricing Q3 2023

10/30/2023

Insurance pricing in the third quarter in the Latin America and Caribbean (LAC) region increased 10%, compared to 8% in the prior quarter.
Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK pricing Q3 2023

10/30/2023

Insurance pricing in the UK declined 1% in the quarter, compared to a 1% increase in the prior quarter.
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Global Insurance Market Index

Europe pricing Q3 2023

10/30/2023

Insurance pricing in the third quarter in Europe increased 4%, compared to 5% in the prior quarter.

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Global Insurance Market Index

Asia pricing Q3 2023

10/30/2023

Insurance pricing in the third quarter in Asia was flat, the same as in the prior quarter.
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Global Insurance Market Index

Canada pricing Q3 2023

10/30/2023

Insurance pricing in Canada declined 1% in the third quarter, the first quarter showing a year-over-year decline since the third quarter of 2017.

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Global Insurance Market Index

IMEA pricing Q3 2023

10/30/2023

Pricing in the third quarter increased 3% in IMEA, where insurance rates for large and complex accounts are often driven or influenced by the reinsurance market.

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 23/468