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Press release

Cyber rate increases continue to moderate; financial and professional rates fall for a third quarter while property rates rise in most regions; Asia composite pricing up 1%

Asia, 4 May, 2023 – Global commercial insurance prices increased 4% in the first quarter of 2023, the same rate as the fourth quarter of 2022, according to the Global Insurance Market Index  released today by Marsh, the world’s leading insurance broker and risk advisor; Q1 marks the 22nd consecutive quarter of pricing increases.

Pricing increases across most regions moved within a small range compared to the previous quarter as decreases in financial and professional lines, and continued moderation in the cyber market, were offset by increases in property rates. In the UK, composite pricing increased by 3% (down from a 4% increase in Q4 of 2022), in Continental Europe by 5% (down from 6% in Q4), and in Asia by 1% (down from 2% in Q4). In the US, pricing increased by 4% (up from a 3% increase in Q4), in Pacific by 7% (up from 5% in Q4), and in Latin America and the Caribbean by 8% (up from 7% in Q4).

Among other findings, the survey noted:

  • Global property insurance pricing in the first quarter increased in most regions, led by the US which rose by 17%, compared to an 11% rise in the prior quarter. On average, property insurance pricing was up 10% in Q1 2023, compared to a 7% increase in Q4 2022; casualty pricing was up 3% on average, the same rate as the previous quarter.
  • In Asia, property insurance pricing increased 2% in the first quarter, the same as in the prior four quarters. Casualty pricing declined 2% in the first quarter, compared to a decline of 1% in the prior quarter. 
  • The January reinsurance natural catastrophe treaty renewals in Asia were challenging for most insurers and affected retentions and pricing. Renewal results favored companies with exemplary claims performance, limited catastrophe exposure, and strong risk management practices.
  • For the third consecutive quarter, overall pricing in financial and professional lines fell globally. Driven by further rate reductions in the US and UK, average pricing declined by 5% in Q1, compared to a 6% decrease in Q4.
  • Asia financial and professional lines pricing was flat in the first quarter, compared to a 2% increase in the prior quarter.
  • Globally, cyber insurance pricing continued to moderate, with average price increases of 11% compared to 28% in Q4 2022. This was particularly evident in the largest cyber insurance markets, with prices rising by 11% in the US and 10% in the UK, compared to 28% and 34%, respectively, in the prior quarter.
  • In Asia, cyber pricing increased 8% in the first quarter, compared to 22% in the prior quarter. Insurer demands for more detailed submission information has helped improve cyber risk management and provided greater clarity of some companies’ cyber exposures.
  • Concerns about the impact of inflation on asset values and claims costs continued to be a focus for insurers. For example, in the US total insured values at renewal increased by 9%, on average, in the quarter.

Commenting on the report, Lucy Clarke, President, Marsh Specialty and Global Placement, Marsh said: “We welcome the favorable trends for our clients in D&O and cyber, but continued loss activity in property lines, and an increase in the cost of reinsurance and capital, combined with scarcity in certain lines, means that clients continue to face challenging market conditions.

“To help our clients address these issues, we continue to explore ways to bring new capacity to lines where it is most needed, as well as examining captive solutions and capital market alternatives.”

About Marsh

Marsh, a business of Marsh McLennan (NYSE: MMC), is the world’s top insurance broker and risk advisor. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of $23 billion and more than 85,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit marsh.com, or follow us on LinkedIn and X.

Media contact

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Phyllis Cheng

Vice President, Corporate Communications, Asia

  • Singapore

Please note that Marsh PB Co., Ltd and Marsh McLennan are not engaged by nor involved in any manner with Bonus Ranch and its promotion, and has not placed any insurance for nor insured any of its businesses or operations. Marsh as a licensed insurance broker will not request customers to make payment via non-standard methods, such as the transfer of money to any individual’s bank account.