New York | April 27, 2023
Global commercial insurance prices increased 4% in the first quarter of 2023, the same rate as the fourth quarter of 2022, according to the Global Insurance Market Index released today by Marsh, the world’s leading insurance broker and risk advisor and a business of Marsh McLennan; Q1 marks the 22nd consecutive quarter of pricing increases.
Pricing increases across most regions moved within a small range compared to the previous quarter as decreases in financial and professional lines, and continued moderation in the cyber market, were offset by increases in property rates. In the UK, composite pricing increased by 3% (down from a 4% increase in Q4 of 2022), in Continental Europe by 5% (down from 6% in Q4), and in Asia by 1% (down from 2% in Q4). In the US, pricing increased by 4% (up from a 3% increase in Q4), in Pacific by 7% (up from 5% in Q4), and in Latin America and the Caribbean by 8% (up from 7% in Q4).
Among other findings, the survey noted:
- Property insurance pricing in the first quarter increased in most regions, led by the US which rose by 17%, compared to an 11% rise in the prior quarter. On average, global property insurance pricing was up 10% in Q1 2023, compared to a 7% increase in Q4 2022; casualty pricing was up 3% on average, the same rate as the previous quarter.
- For the third consecutive quarter, overall pricing in financial and professional lines fell. Driven by further rate reductions in the US and UK, average pricing declined by 5% in Q1, compared to a 6% decrease in Q4.
- Globally, cyber insurance pricing continued to moderate, with average price increases of 11% compared to 28% in Q4 2022. This was particularly evident in the largest cyber insurance markets, with prices rising by 11% in the US and 10% in the UK, compared to 28% and 34%, respectively, in the prior quarter.
- Concerns about the impact of inflation on asset values and claims costs continued to be a focus for insurers. For example, in the US total insured values at renewal increased by 9%, on average, in the quarter.
Commenting on the report, Lucy Clarke, President, Marsh Specialty and Global Placement, Marsh said: “We welcome the favorable trends for our clients in D&O and cyber, but continued loss activity in property lines, and an increase in the cost of reinsurance and capital, combined with scarcity in certain lines, means that clients continue to face challenging market conditions.
“To help our clients address these issues, we continue to explore ways to bring new capacity to lines where it is most needed, as well as examining captive solutions and capital market alternatives.”
