During the first quarter of 2022, commercial insurance rates saw an 11% increase worldwide compared with a 13% increase in the previous quarter, according to Marsh, which reported Q1 2022 was the fifth consecutive period to experience rate moderation since prices peak in Q4 2020.
While this is the 18th consecutive quarter of increases, Marsh noted the rate of premium growth has been moderating across most lines and in almost all regions. This trend is anticipated to continue as “fundamentals remain strong,” according to Lucy Clarke, president of Marsh Specialty and Marsh Global Placement.
“The war in Ukraine, while most importantly a humanitarian tragedy, has added pressure to what is already a challenging insurance market for our clients,” Clarke said in a release. “We are also beginning to see the impact of rising inflation on loss costs and exposure growth, which in turn could affect pricing.”
In the U.S., composite prices increased 12% in Q1 2022, compared with a 14% increase the previous quarter. Similarly, rates in the UK showed a first quarter increase of 20% compared with a 22% increase in Q4 2021.
Overall, financial and professional lines have outpaced property and casualty lines rate moderation, according to Marsh, which reported financial and pro lines saw a rate increase of 26% in Q1. In comparison, property and casualty composite rates increased 7% and 4%, respectively, during the most recently concluded quarter.
Rates for financial and professional lines were heavily influenced by triple-digit growth in cyber insurance pricing. Pricing for cyber in the U.S. was up 110%, while the U.K. saw cyber prices up 102% during the period.
