Global Insurance Market Index

Pacific Pricing Q3 2021

Insurance pricing in the Pacific region increased 17%, continuing an upward trend that began in 2015, although it was the third consecutive quarter in which the rate of increase slowed.

Pacific Pricing: Rate of Increase Slows for Third Consecutive Quarter

Insurance pricing in the Pacific region increased 17%, continuing an upward trend that began in 2015, although it was the third consecutive quarter in which the rate of increase slowed.

Pacific Insurance Pricing - Q3 2021

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing increased 11%.

Elements of competition returned to the market for risks seen as high quality and/or loss free.
Difficulties remained for high hazard industries, risks in CAT zones, and clients with poor loss records.

Casualty insurance pricing rose 15%.

The casualty market remained challenging from a pricing perspective, although with slightly less pressure in the third quarter than the two preceding ones.
Insurers’ emphasis on reviewing policy wording continued.
Large programs underwent substantial restructuring of layers as underwriters changed appetite for excess layers.

Financial and professional lines pricing rose 25%, a significant moderation from 48% in the first quarter, but marking 21 consecutive quarters of double-digit increases.

The levelling out in pricing of D&O programs continued amid developing competition, particularly for excess layers, which resulted in improved pricing for some large clients.
Professional indemnity premiums increased again and capacity tightened.
Cyber premiums increased dramatically, in line with the global trend; capacity shrunk and many programs were unable to purchase historical limits.