Global property insurance pricing was up 10% on average in Q2 2023, the same as in Q1, according to Marsh’s Global Insurance Market Index.
Marsh’s Index notes that average insurance pricing was relatively consistent across all regions in the quarter, driven by rate decreases for financial and professional lines and continued moderation in the cyber insurance market, which was offset by the aforementioned property insurance increases, which were the largest of any major product line in Q2.
In the UK, composite pricing increased by 1% (down from a 3% increase in Q1 of 2023), in the Pacific, it increased by 2% (down from 7% in Q1) and was flat in Asia (down from 1% in Q1).
The remaining regions recorded identical increases to the previous quarter; in Latin America and the Caribbean, pricing increased by 8% (8% in Q1), in Continental Europe by 5% (5% in Q1), and in the US by 4% (4% Q1).
Elsewhere in Marsh’s report, it was disclosed that global commercial insurance prices increased 3% in Q2, marking the 23rd consecutive quarter of pricing increases. Meanwhile, casualty insurance pricing increased by 3%, the same as in Q1.
Pat Donnelly, President, Marsh Specialty and Global Placement, Marsh, commented, “While the continued moderation in cyber and D&O insurance is a highly positive development for our clients, the continued increases in the property market, specifically property catastrophe, remain an area of concern for our clients, and of focus for us.
“As we move through the second half of 2023, we are working with clients to explore a broad range of options that will help them navigate the challenges ahead amid ongoing economic, inflationary, and geopolitical uncertainty, and achieve optimal outcomes from the insurance market.”
Marsh’s Index also found that for the fourth consecutive quarter, overall average pricing for financial and professional lines fell.
Driven by rate reductions and additional capacity – particularly in the UK – average pricing decreased by 8% in the second quarter, compared to a decline of 5% in Q1,
Globally, cyber insurance pricing increases moderated to 1%, compared to 11% in the prior quarter and 28% in Q4 2022.
This was driven by significant moderation in the US, with average price decreases of 4%, compared to 11% increases in Q1, said Marsh.
