Continental Europe Pricing Q2 2022

Property and D&O lines continue to stabilize

Insurance pricing in the second quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of increase as in the first quarter.

Property insurance pricing rates in CE rose 6%, as insurer competition, particularly for insureds with low levels of loss, put downward pressure on rates.

• Insurer interest in offering long-term agreements increased.
• Inflation concerns caused insurers to increase focus on adequacy of valuations for insured or replacement values.
• Insurers maintained strict underwriting controls and discipline regarding capacity deployment and aggregation issues, especially for contingent business interruption extensions.

Casualty insurance pricing increased 7%, compared to 6% in the first quarter.

• Pricing increases were limited by insurer competition for new business.
• Loss-impacted renewals were most challenging, with insurers restricting capacity deployed on individual programs.
• Insurers demonstrated continued concern about US exposures due to severity of losses and jury awards.
• Insurers focused on exclusionary language, for example cyber, chemical substances, war and sanctions, climate change litigation, and sexual abuse and molestation.
• Auto liability pricing increased, by double digits in some territories.

Financial and professional lines pricing moderated, increasing 5% in the second quarter, down from 9% in the prior quarter.

• Stability in the D&O space continued due to increased competition from insurers and new capacity.
• FIs continued to experience moderating increases; in some cases pricing was flat to moderate reductions.
• Cyber insurance pricing increased by 50%, compared to 80% in the prior quarter.
• Concerns around systemic exposures and accumulation risk continued to grow, with the war in Ukraine a particular concern.