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Global Insurance Market Update

Continental Europe Pricing Q3 2022

Insurance pricing in the third quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of increase as in the prior two quarters

25/10/2022

Cyber insurance shows signs of stabilising

Insurance pricing in the third quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of increase as in the prior two quarters

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing in CE rose 5%, compared to 6% in the second quarter.

  • Insurer appetite increased as the overall rating environment improved.
  • There was increased interest from insurers to offer long-term agreements.
  • Conditions continued to depend on loss experience and risk quality.
    • Specific industries and risks found it more challenging to find capacity due to more restrictive underwriting guidelines.
  • Strict underwriting controls continued and insurers remained disciplined with respect to capacity deployment and aggregation, especially for contingent business interruption extensions.
  • Territorial exclusions continued for Ukraine, Belarus, and Russia.

Casualty insurance pricing increased 7%, the same as in the prior quarter and the thirteenth consecutive quarter of increases.

  • There was a continued reduction in capacity from key primary insurers.
  • Insurers increased pricing levels due to perceived inadequacy for risks with US exposure, or those in complex industries.
  • Excess casualty and US-exposed placements continued to be challenging, with general liability risk experiencing double-digit increases in several countries.
  • Some insurers reconsidered risk appetite, at times resulting in price increases or withdrawal of capacity, which particularly affected renewals with losses and in challenging sectors.
  • Insurers’ concerns continued regarding social and general inflation on US auto exposures, with significant price increases typical for clients with large US auto fleets.
  • Underwriter scrutiny continued for non-core extensions, such as product recall and medical malpractice.

Financial and professional lines pricing rose 6% in the third quarter.

  • Stability continued for D&O liability pricing due to increased capacity and competition from insurers; pricing remained generally flat to low-single digit increases.
    • Some primary insurers offered long-term agreements.
    • Competition was seen across all program layers.
    • Environmental, social, and governance (ESG) risk profiles continued to receive increased underwriter scrutiny.
  • For FIs, rate increases continued to moderate, and some clients experienced moderate reductions.
  • Crime renewal terms continued to stabilise.

Cyber insurance pricing increased 40%, compared to 50% in the second quarter, as new capacity entered the market.

  • Insurers continued to seek to increase retentions in many instances.
  • Underwriters continued to require detailed information on cyber risk controls, particularly regarding ransomware.
  • Insurer concerns continued around systemic exposures and accumulation risk.

Global Insurance Market Index – 2022 Q3

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Global Insurance Market Index

US Pricing

Insurance pricing in the third quarter of 2022 in the US increased by 5%, compared to 10% in the prior quarter
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Global Insurance Market Index

UK Pricing

Insurance pricing in the third quarter of 2022 in the UK increased 7%, compared to 11% in the second quarter
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Global Insurance Market Index

Latin America and Caribbean Pricing

Insurance pricing in the third quarter in the Latin America and Caribbean (LAC) region increased 5%, the same as in the prior quarter
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Global Insurance Market Index

Pacific Pricing

Insurance pricing in the Pacific region increased 5%, down from 7% in the prior quarter and the seventh consecutive quarterly reduction in rate increases
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Global Insurance Market Index

Asia Pricing

Insurance pricing in the third quarter of 2022 in Asia increased 2%, down from 3% in the prior two quarters