Global commercial insurance prices rose 6% in the third quarter of 2022, according to the Marsh Global Insurance Market Index (see Figure 1). The pace of rate increases slowed for the seventh consecutive quarter; global composite increases peaked at 22% in the fourth quarter of 2020.
The third quarter was the twentieth consecutive in which composite pricing rose globally, continuing the longest run of increases since the inception of the index in 2012.
In the Middle East and North Africa (MENA) region, local insurers generally are not able to act as a leader on large insurance programs due to limited local capacity, and are typically dependent on the reinsurance market. In the third quarter, some reinsurers acted to capture new business. Multiple reinsurers are reviewing possibilities to start underwriting from the Dubai International Finance Centre (DIFC).
Insurance pricing in South Africa is heavily risk dependent. In some instances, international markets are more competitive than local markets. Pricing for general liability increases stabilized but property capacity remained a challenge in the third quarter