Global Insurance Market Update

Pacific Pricing Q3 2022

Insurance pricing in the Pacific region increased 5%, down from 7% in the prior quarter and the seventh 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.

D&O pricing declines for second consecutive quarter

Insurance pricing in the Pacific region increased 5%, down from 7% in the prior quarter and the seventh consecutive quarterly reduction in rate increases

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing increased 4%, down from 5% in the prior quarter.

  • Severe flood events in Queensland and New South Wales earlier in the year — with an estimated insured loss greater than $AUD6 billion — has increased the focus on storm/flood risk mitigation, deductible adequacy, and sub-limits.
  • Underwriters continued to focus on general CAT and secondary CAT perils.
  • Commitment to continual risk improvement is critical to renewal success. Insurers also focused on current valuations supporting declared values.

Casualty insurance pricing rose 10%, down from 11% in the prior quarter.

  • Insurers demonstrated continued caution due to claims inflation resulting from litigation trends, as well as inflation in material cost.
  • Some major programs underwent substantial restructuring of layers as a result of changing underwriter appetite.

Financial and professional lines pricing rose 4%, a decrease from 6% in the prior quarter.

  • D&O pricing continued to decline; other financial and professional lines pricing increases continued to moderate.
  • Competition continued to develop, particularly for excess layers, resulting in improved pricing.

Cyber insurance remained challenging; however, it began to stabilize in the quarter as insurers sought to grow their business in this area.

  • Ransomware continued to dominate the claims environment.

Global Insurance Market Index – 2022 Q3