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Global Insurance Market Index

UK Pricing Q4 2021

Insurance pricing in the fourth quarter of 2021 in the UK increased 22%, compared to 27% in the third quarter.
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UK Pricing: Increases in All Major Coverage Areas Decelerate

Insurance pricing in the fourth quarter of 2021 in the UK increased 22%, compared to 27% in the third quarter.

Constant bar chart represents Global Insurance Composite Pricing Change.

Q3 2014Q4 2014Q1 2015Q2 2015Q3 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 2021-6%-4%-2%0%2%4%6%8%10%12%14%16%18%20%22%24%Q3 2014Q4 2014Q1 2015Q2 2015Q3 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 2021Global Insurance Composite Pricing ChangeUS Insurance Composite Renewal Rate

Property insurance pricing increased 10%, compared to 11% in the third quarter.

  • Loss activity through 2021, as well as rising reinsurance treaty costs contributed to pricing increases.
  • Capacity was abundant for industry sectors sought after by insurers, while those perceived as challenging, including the food, timber, chemicals, and waste sectors, did not experience an influx of capacity or competition.
  • Insurers continued to push cyber and communicable disease restrictions.

Casualty insurance pricing increased 4%, compared to a 7% increase in the prior quarter.

  • Employers liability pricing reflected the influence of competition for large and high-profile primary placements that had not been marketed for several years.
  • The motor liability market experienced increased competition for conventional private car and light commercial fleets, which in some cases resulted in rate reductions.

Financial and professional lines pricing increased 43%, a decline from the 54% rise seen in the prior quarter.

  • The rate of increase for D&O was 24% in the fourth quarter, compared to 61% in the third quarter, due primarily to increased capacity.
  • A year after the departure of some major insurers from the London market, most of their capacity has been replaced, although limits generally remained lower.
  • Cyber insurance pricing increased by 92%, driven by ransomware claims.
  • Financial institutions experienced a slowing of pricing increases, with more new entrants and an increase in incumbent insurers growing their business.
  • Commercial crime coverage pricing increased 30% to 40%.