Pricing was most challenging for those with clients dealing with natural catastrophe exposures, for example

Insurance pricing in Q2 2022 increased by a slower growth of 11% – compared to 20% in the first quarter of this year, according to Marsh’s Global Insurance Market Index published today (1 August 2022).

Property insurance pricing rates, in particular, increased by 6% – three percentage points lower than the 9% increase in the first quarter of 2022.

Pricing was most challenging for clients with natural catastrophe (CAT) exposures and those in the food, waste, warehousing and chemical industries.

To offset challenging exposures, some insurers packaged property coverage with motor and casualty.

Underwriters, meanwhile, demonstrated concern regarding valuation on property damage and business interruption (BI) estimates.

Insurance Times has approached Marsh for comment on the UK market.

‘Tough’ trading conditions

From a global perspective, however, president of Marsh Speciality and Global Placement Lucy Clarke said that “trading conditions remain tough for many clients” in an uncertain business environment  – “driven by the ongoing war in Ukraine, supply chain disruption and rising inflation”.

In terms of financial and professional lines, pricing saw a decline in some products, although the overall average rate increased due to the impact of continued increases in cyber insurance.

Cyber insurance rate increases moderated to 68%, compared to 102% in Q1 2022. Some insureds, however, continued to experience increases in the triple digits.

Considering product decline – the directors and officers (D&O) market experienced substantial rate decreases on larger multinational accounts.

Although midsize and smaller companies continued to experience rate increases or flat renewals.