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.
In the second quarter of 2022, a slower pace of increase in financial and professional lines contributed to a moderation of pricing in most geographies.
Cyber insurance pricing continued to rise significantly, although the pace of increase slowed in the quarter, to 79% in the US and 68% in the UK, compared to 110% and 102%, respectively, in the prior quarter.
The UK experienced the steepest decline in composite pricing increases, to 11% this quarter from 20% in the first quarter.
The Marsh survey noted:
- Global property insurance pricing was up 6% on average in the second quarter of 2022, down from a 7% increase in Q1 2022.
- Casualty pricing was up 6% on average, compared to 4% in the previous quarter.
- Overall pricing in financial and professional lines, driven by cyber, again had the highest rate of increase across the major insurance product categories, at 16%. However, this was down from 26% in the previous quarter.
- Rates for directors and officers insurance declined in the U.S., UK and Pacific.
- The adequacy of valuations for insured or replacement values has become a focal point for insurers, driven by concerns about inflation, supply chains, and labor shortages, as well as claims inflation in cases where adjusted loss amounts exceed reported values.
- In the U.S., clients with significant losses or exposure to secondary catastrophe perils – including wildfire, convective storm, and pluvial flood – typically experienced above average increases.