Insurance pricing in the Pacific region increased 10%, down from 13% in the prior quarter and the fifth consecutive quarterly reduction in rate increase.
Constant bar chart represents Global Insurance Composite Pricing Change.
Property insurance pricing increased 8%, mirroring the rate increase in the fourth quarter of 2021.
The near AU$3 billion market loss from the New South Wales and Queensland floods curtailed any pricing relief expected for the start of the year
Challenges have increased for risks in CAT zones, with flood a particular concern.
Clients experienced an increased underwriting focus on CAT sub-limits, including contingent business interruption, deductibles, and risk mitigation.
Casualty insurance pricing rose 15%, the same rate of increase for the third consecutive quarter.
Pricing in the casualty market remained challenging, due in large measure to claims inflation and reduced capacity from some major carriers.
Risk selection continues to be more pronounced than in previous quarters.
Changing underwriting appetite continues to spur substantial restructuring of layers for some major programs.
Financial and professional lines pricing rose 10%, a decrease from 18% in the prior quarter.
The leveling out of pricing in D&O programs continued.
Competition among insurers, particularly for excess layers, continued to improve pricing for some clients.
Professional indemnity premiums again increased as capacity continued to tighten.
Cyber risk insurance remained challenging, mainly due to frequent and severe ransomware losses that put pressure on pricing and deductibles and brought a marked reduction in capacity and narrowing of key coverages.