Property and D&O lines continue to stabilize
Insurance pricing in the second quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of increase as in the first quarter.
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Property insurance pricing rates in CE rose 6%, as insurer competition, particularly for insureds with low levels of loss, put downward pressure on rates.
- Insurer interest in offering long-term agreements increased.
- Inflation concerns caused insurers to increase focus on adequacy of valuations for insured or replacement values.
- Insurers maintained strict underwriting controls and discipline regarding capacity deployment and aggregation issues, especially for contingent business interruption extensions.
Casualty insurance pricing increased 7%, compared to 6% in the first quarter.
- Pricing increases were limited by insurer competition for new business.
- Loss-impacted renewals were most challenging, with insurers restricting capacity deployed on individual programs.
- Insurers demonstrated continued concern about US exposures due to severity of losses and jury awards.
- Insurers focused on exclusionary language, for example cyber, chemical substances, war and sanctions, climate change litigation, and sexual abuse and molestation.
- Auto liability pricing increased, by double digits in some territories.
Financial and professional lines pricing moderated, increasing 5% in the second quarter, down from 9% in the prior quarter.
- Stability in the D&O space continued due to increased competition from insurers and new capacity.
- FIs continued to experience moderating increases; in some cases pricing was flat to moderate reductions.
- Cyber insurance pricing increased by 50%, compared to 80% in the prior quarter.
- Concerns around systemic exposures and accumulation risk continued to grow, with the war in Ukraine a particular concern.
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Asia Pricing
Insurance pricing in the second quarter of 2022 in Asia increased 3%, the same as in the prior quarter.