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Global Insurance Market Index

Pacific pricing Q2 2023

Insurance pricing in the Pacific region increased 2% in the second quarter, compared to 7% in the prior quarter.
January 10, 2019. Sydney, Australia. Landscape aerial view of Sydney Opera house near Sydney business center around the harbour.

31/07/2023

Australia-Pacific insurance markets: Property, liability and cyber insurance pricing continue to rise with moderation, while financial and professional lines pricing begin to decrease. 

Insurance pricing in the Pacific region increased 2% in the second quarter, compared to 7% in the prior quarter. Globally, the average pricing increase in the second quarter was 3%, compared to 4% in the prior quarter according to the Marsh Global Insurance Market Index*. 

 

Property insurance pricing in the Pacific region increased 5% in the second quarter, compared to 8% in the prior quarter.

  • It was important that insureds’ declared values were supported by formal valuations and/or adequate inflation loadings.
  • Cautious underwriting continued; however, we saw signs of insurers seeking to grow their business.

Casualty/liability insurance pricing rose 7%, compared to 10% in the prior three quarters.

  • Insurers focused on claims inflation resulting from litigation trends, as well as material cost inflation.
  • The emergence of new capacity fostered more competition than has been seen over the last three years.

Financial and professional lines pricing decreased for the first time (8%) in recent years, after being flat in the prior two quarters. 

  • D&O pricing continued to decline, generally decreasing 10% or more.
  • Competition remained strong for both primary and excess layers from both new and legacy insurers.
  • Macro-economic impacts, such as inflation and interest rate pressures, were important underwriting factors.

Cyber insurance pricing increased 8% in the second quarter, compared to 25% in the prior quarter.

  • Increased competition from insurers opened up more options for clients.
  • Ransomware claims were the most common, usually involving both business interruption (BI) and data breach.  
  • Risk information remained important to underwriters, particularly regarding an organization’s ability to mitigate ransomware threats.

Constant bar chart represents global insurance composite pricing change.

Global insurance pricing

Across the regions, composite pricing increases for the second quarter were as follows:

  • Pacific: +2%
  • US: +4%
  • UK: +1%
  • Europe: +5%
  • Latin America and the Caribbean: +8%
  • Asia: Flat

Globally, pricing for the four major product lines were as follows:

  • Property insurance: +10%
  • Casualty insurance: +3%
  • Financial and professional lines insurance: -8%
  • Cyber insurance: +1%.

We invite you to read the full Global Insurance Market Index Second Quarter 2023. (Download below.) If you would like more information about pricing or other risk and insurance issues, please reach out to your Marsh representative.

*Note: It is important to note that reported pricing changes are averages and that the data used to estimate the changes cover a wide range of clients in terms of size, industry, location, claims history, and other parameters. Many clients received pricing changes that deviated from the average, some higher and some lower. For ease of reporting, we have rounded all percentages regarding pricing movements to the nearest whole number.

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Global Insurance Market Index

US pricing

Insurance pricing in the second quarter of 2023 in the US increased by 4%, the same as in the prior quarter.
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Global Insurance Market Index

UK pricing

Insurance pricing in the UK increased 1% in the second quarter, compared to 3% in the prior quarter.
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Global Insurance Market Index

Latin America and Caribbean pricing

Insurance pricing in the second quarter in the Latin America and Caribbean (LAC) region increased 8%, the same as in the prior quarter.
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Global Insurance Market Index

Continental Europe pricing

Insurance pricing in the second quarter in Continental Europe (CE) increased 5%, the same as in the prior quarter.
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Global Insurance Market Index

Asia pricing

Insurance pricing in the second quarter in Asia was flat, compared to a 1% increase in the prior quarter.

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