Global commercial insurance prices rose by 9% in the second quarter of 2022, according to the Marsh Global Insurance Market Index. The pace of rate increases slowed for the sixth consecutive quarter; global composite increases peaked at 22% in the fourth quarter of 2020.
The second quarter was the nineteenth consecutive in which composite pricing rose, continuing the longest run of increases since the inception of the index in 2012
Insurer capacity for larger risks continues to be challenging in the Middle East and North Africa (MENA) region. Some insurers restructured program layers, increasing their reliance on international markets for assistance. Large organizations with loss limits in excess of USD$250 million typically require support from outside of the region.
In South Africa where premiums rates are dependent on specifics, increases in insurance pricing varied depending on the nature of risk, claims experience and overall risk management. Pricing for both property and casualty increased in the second quarter.