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Global Insurance Market Update

Pacific Pricing Q4 2022

Insurance pricing in the Pacific region increased 5% in the fourth quarter, the same as in the prior quarter.
January 10, 2019. Sydney, Australia. Landscape aerial view of Sydney Opera house near Sydney business center around the harbour.

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.

Constant bar chart represents Global Insurance Composite Pricing Change.

Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022Q3 2022Q4 2022-5%0%5%10%15%20%Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022Q3 2022Q4 2022Global Insurance Composite Pricing ChangePacific Casualty Insurance Renewal Rate

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.

Global Insurance Market Index – 2022 Q4