Global commercial insurance rates up 13pc in Q4 21

Global commercial insurance prices increased by 13% in Q4 2021, according to Marsh’s latest Global Insurance Market Index, continuing a trend of moderating rate increases that began in Q1 2021.

The UK, with a composite pricing increase of 22% (down from 27% in Q3), the US, where prices increased 14% (steady from the previous quarter) and the Pacific region, with a 13% increase (down from 17% in Q3) continued to drive the global composite rate.

The rate of increase in Asia was 4% (down from 6%) and 9% in Continental Europe (down from 10%). The one exception to the moderating trend was Latin America and the Caribbean where rates increased by 4% (up from 2% the previous quarter).

Global property insurance pricing was up 8% on average, down from a 9% increase in Q3 2021; casualty was up an average 5%, down from 6% in the previous two quarters.

Financial and professional lines pricing, driven by cyber, again had the highest rate of increase across the major insurance product categories, at 31%, compared with 32% in the previous quarter.

The continued frequency and severity of ransomware claims, and subsequent tighter coverage drove up rates in cyber. Prices increased 130% in the US (up from 96% in Q3) and 92% in the UK (up from 73%).

Commenting on the figures, Lucy Clarke, president, Marsh Specialty and Marsh Global Placement, said: “We are operating in a challenging risk and insurance market and will continue to focus on developing solutions in classes such as cyber, which will continue to be difficult for both clients and insurers. More broadly, however, we expect continued moderation in rate increases through 2022, a trend which will be welcomed by our clients.”

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