Global commercial insurance trends: continued high growth in the cost of cyber insurance
- Published: Wednesday, 10 August 2022 08:48
Global commercial insurance prices increased 9 percent in the second quarter of 2022 (down from an 11 percent increase in Q1), according to the Global Insurance Market Index released today by Marsh, however strong growth was seen in the cost of cyber insurance.
While this is the 19th consecutive quarter of increases, the rate of increase continued to moderate across most lines of business and in almost all geographies.
Pricing increases across most regions moderated due to slower rates of increase, and some decreases, in certain financial and professional lines. The UK, with a composite pricing increase of 11 percent (down from 20 percent in Q1 of 2022), experienced the largest decline in average price increases. In the US, prices increased by 10 percent (down from 12 percent), in Pacific by 7 percent (down from 10 percent), in Latin America and the Caribbean by 5 percent (down from 6 percent), in Asia by 3 percent, and by 6 percent in Continental Europe (both the same as the previous quarter).
Among other findings, the survey found:
- Global property insurance pricing was up 6 percent on average in the second quarter of 2022, down from a 7 percent increase in the previous quarter; casualty pricing was up 6 percent on average, compared to 4 percent in the previous quarter.
- Overall pricing in financial and professional lines, driven by cyber, again had the highest rate of increase across the major insurance product categories, at 16 percent. However, this was down from 26 percent in the previous quarter.
- Rates for directors and officers insurance declined in the US, UK and Pacific.
- Cyber insurance pricing continued to rise significantly, although the pace of increase slowed in the quarter, to 79 percent in the US and 68 percent in the UK, compared to 110 percent and 102 percent, respectively, in the prior quarter.