Global commercial insurance rates increased by 4 per cent in the first quarter of 2023, the same rate as the fourth quarter of 2022, according to Marsh’s Global Market Index report.
The insurance broker and risk advisory firm says this is the 22nd consecutive quarter of rate increases, although price increases in most regions moved within a small range, compared to the previous quarter.
Marsh says decreases in financial and professional lines, and continued moderation in the cyber market, were offset by increases in property rates. Property insurance pricing in the first quarter increased in most regions, led by the US which rose by 17 per cent, compared to an 11 per cent rise in the prior quarter.
Globally, cyber insurance pricing continued to moderate, with average price increases of 11 per cent compared to 2 per cent in Q4.
The report finds that concerns about the impact of inflation on asset values and claims costs continues to be a focus for insurers. For example, in the US total insured values at renewal increased by 9 per cent, on average, in Q1.
Lucy Clarke, president of Marsh Specialty and Global Placement, comments: “We welcome the favourable 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.”
