Larger insurance programs, in MENA are generally placed via the reinsurance market, which follows changes similar to the international reinsurance market. This is due to local insurers in MENA, in general, not being able to act as a leader on large insurance programs, due to limited capacity. Therefore, larger more complex risks are more dependent on the reinsurance market.
Casualty: Casualty insurance market pricing increased 4% in the first quarter, compared to an average 5% decrease in the fourth quarter of 2021.
Property: Property insurance market pricing increased 3% in the first quarter, on average, the same as experienced in the fourth quarter of 2021
Casualty: The casualty market continued to soften in the first quarter, with pricing generally experiencing reductions ranging from 5% to 7.5%.
Liability pricing continued to stabilize, with increased demand from various business segments, particularly engineering, procurement, and construction (EPC), and operation and maintenance (O&M) contractors venturing into new projects. There was an increase in aviation liability queries due to privatization of the aviation sector. Aviation liability pricing increased more than 10%, on average, in the first quarter.
Property: Property insurance pricing reductions averaged of 5% in the first quarter. Larger and higher hazard risks continued to see rate increases in Larger and higher hazard risks continued to see rate increases in excess of 5% in the first quarter as insurers continued to offload certain risks, take smaller shares, and invite new participants. The increased capacities of local markets helped contain the impact of pricing increases on catastrophe exposed risks. Non-catastrophe risks remained targets for local markets, which often offered reduced pricing.
Casualty: Pricing in the first quarter in the casualty insurance market remained generally stable, declining 1%, on average.
Property: On average, property pricing increased 3% in the first quarter, compared to 13% in the prior quarter.
Property insurance pricing increased an average of 29% in the first quarter. Some insurers that experienced significant property insurance losses due to Cyclone Shaheen offered limited, if any, capacity in the first quarter.
Insurance pricing was generally stable in the fourth quarter of 2021, with the exception of property and engineering risks, which experienced increased claims following Cyclone Shaheen.
Casualty: Pricing in the casualty insurance market remained stable and competitive, declining 3% on average in the first quarter.
Property: Property insurance pricing increased an average of 29% in the first quarter. Some insurers that experienced significant property insurance losses due to Cyclone Shaheen offered limited, if any, capacity in the first quarter.
In the local insurance market in Egypt, overall pricing was stable, with generally minimal or flat increases. Purchasing coverage from international markets tended to bring pricing increases, in line with global trends.
Casualty: Pricing was generally stable as local markets had sufficient capacity.
Property: As most of Egypt's businesses are not in catastrophe areas, property insurance pricing remained stable, particularly when local markets provided coverage.
Overall, insurance pricing remained stable in the first quarter of 2022.
Casualty: Pricing in the casualty market remained stable in the first quarter.
Property: Pricing in the property market remained generally stable in the fourth quarter, due to insurers relying on reinsurance treaties to meet the local competition.
Insurance pricing in South Africa is heavily dependent on risk specifics. In some instances, international markets are competitive with local ones, in other cases their pricing is higher.
Casualty: Year-over-year pricing in casualty markets generally increased between 10% and 45% in the fourth quarter of 2021.
Property: Property insurance pricing increased by 18% in the quarter, compared to a 23% increase the prior quarter.