Commercial insurance rates continue to moderate

Global commercial insurance prices were up 6% in the third quarter of 2022 (down from an 9% increase in Q2), according to Marsh’s latest Global Insurance Market Index.

These figures continue a trend of moderating increases that began in Q1 2021. While this is the 20th consecutive quarter of increases, pricing moderated in most regions driven by the first decrease in financial and professional lines since Q3 2017.

Pricing increases across most regions moderated due to an overall decrease in certain financial and professional lines, most notably D&O.

The US, with a composite pricing increase of 5% (down from 10% in Q2 of 2022), experienced the largest moderation in average price increases. Rates increased in the UK by 7% (down from 11%), in Pacific by 5% (down from 7%), and in Asia by 2% (down from 3%). In Latin America and the Caribbean prices increased by 5% (the same as Q2) and by 6% in Continental Europe (the same as the previous two quarters).

Commenting on the findings, Lucy Clarke, president, Marsh Specialty and Global Placement, Marsh said: “The global business environment remains tough for clients. Ongoing inflation and geopolitical instability are affecting all sectors and we expect even more challenging conditions in the already strained property catastrophe market following Hurricane Ian.

“We are working closely with our clients to get the best possible outcomes from the market, as well as explore the whole range of options available to assess and address their risks including alternative and captive solutions.”

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