Pacific Pricing Q4 2022

Financial and professional lines pricing flattens

Insurance pricing in the Pacific region increased 5% in the fourth quarter, the same as in the prior quarter.

Property insurance pricing increased 4%, the same as in the prior quarter, with loss impacted and CAT-exposed clients seeing the highest increases.

• Underwriters continued to focus on CAT perils; organizations’ commitment to continual risk improvement was critical to success at renewal.
• Ensuring valuations supported declared values was a major underwriting focus due to global inflation.

Casualty insurance pricing rose 10%, the same as in the prior quarter.

• Insurers kept a focus on claims inflation resulting from litigation trends, as well as material cost inflation.
• Some new capacity emerged, fostering insurer competition.
• Some major programs underwent substantial restructuring of layers as a result of changing underwriter appetite. 

Financial and professional lines pricing flattened, compared to a 4% increase in the prior quarter.

• D&O pricing continued to moderate, as did other financial and professional lines.
• The development of competition, particularly for excess layers, resulted in improved pricing.

Cyber insurance pricing increased 28% in the fourth quarter.

• The cyber market remained challenging; however, it began to stabilize in the second half of 2022, with rate increases decelerating.
• Coverage scrutiny and cybersecurity controls were the main underwriting focus areas.