Global Insurance Market Update

UK Pricing Q2 2022

Insurance pricing in the second quarter of 2022 in the UK increased 11%, compared to 20% in the first quarter.

Skyline of London over Tower Bridge on the Thames

Financial and professional lines pricing moderates

Insurance pricing in the second quarter of 2022 in the UK increased 11%, compared to 20% in the first quarter.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing rates increased 6%, compared to 9% in the first quarter.

  • Pricing was most challenging for clients with natural catastrophe (CAT) exposures and those in the food, waste, warehousing, and chemical industries.
  • There has been a noticeable absence of major CAT losses this year.
  • More clients with low/medium hazard risks experienced rate reductions.
  • Some insurers sought to offset challenging exposures by packaging property coverage with motor and casualty.
  • Underwriters demonstrated concern regarding valuation, putting focus on property damage and business interruption estimates.

Casualty insurance pricing increased 4%, compared to a 3% increase in the prior quarter.

  • Electric vehicles impacted the automobile liability insurance market, with leading insurers saying that damage repair costs for EVs run approximately 25% higher than for internal combustion vehicles.
  • Employers’ liability insurance pricing increased by 4%, compared to 3% in the prior quarter, driven by poor claims performance among some insureds.
    • US exposure remained a challenge.

Financial and professional lines pricing experienced a decline in some products, although the overall average rate increased due to the impact of continued increases in cyber insurance.

  • D&O pricing declined in the single digits in the second quarter.
    • The D&O market experienced substantial rate decreases on larger multinational accounts.
    • Midsize and smaller companies continued to experience rate increases or flat renewals.
  • The cyber insurance market continued to be challenging, although the rate of increase moderated to 68%, compared to 102% in the first quarter.
    • Some insureds continued to experience increases in the triple digits.
  • Pricing for financial institutions (FIs) continued to moderate as insurer competition increased.