Global Insurance Market Index Q2 2022

Global insurance markets:
Moderation in pricing
increases continues
2 Global Insurance Market Index Q2 2022
Global commercial insurance prices rose by 9% in the second quarter of 2022, according to the Marsh Global
Insurance Market Index. The pace of rate increases slowed for the sixth consecutive quarter; global composite
increases peaked at 22% in the fourth quarter of 2020.
01| Global insurance composite pricing change The second quarter was the nineteenth consecutive
in which composite pricing rose, continuing the
22% longest run of increases since the inception of the
20% index in 2012.
19%
18% In the second quarter of 2022, a slower pace
of increase in financial and professional lines
contributed to a moderation of pricing in
most geographies.
15% 15%
14% Cyber insurance pricing continued to rise

13% significantly, although the pace of increase slowed
in the quarter, to 79% in the US and 68% in the UK,
11% 11%
compared to 110% and 102%, respectively, in the
prior quarter.
9%
The UK experienced the steepest decline in
8%
composite pricing increases, to 11% this quarter
from 20% in the first quarter. Regionally, composite
pricing increases for the second quarter were as
6% follows (see Figure 2):
• US: 10%.
• UK: 11%.
3%
2% 2% 2% • Continental Europe: 6%.
• Latin America and the Caribbean: 5%.
• Asia: 3%.
• Pacific: 7%.
Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22
Source: Marsh Specialty and Global Placement
*Note: All references to pricing and pricing movements in this report are averages, unless otherwise noted. For ease of reporting, we have rounded all
percentages regarding pricing movements to the nearest whole number.
02| Composite insurance pricing change — by region
US UK Cont. Europe Latin America Asia Pacific
27%
22%
20%
17%
14% 14%
13%
12% 11%
10% 10% 10%
9%
7%
6% 6% 6% 6%
5%
4% 4%
3% 3%
2%
Q3 21 Q4 21 Q1 22 Q2 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 21 Q4 21 Q1 22 Q2 22

03| Composite insurance pricing change — by major coverage line Pricing in financial and professional lines had the
highest pricing rate increase across the major
insurance products globally (see Figure 3):
Global Property Global Casualty Global FINPRO • Property insurance: 6%.

• Casualty insurance: 6%.
• Financial and professional lines insurance: 16%.
Cyber pricing drove the increases in overall financial
and professional lines pricing. For example, in the
US, excluding the impact of cyber, financial and
professional lines pricing actually decreased in the
32% low-single digits in the second quarter.
31%
26% Please note that reported changes are averages

and the data used to estimate them cover a wide
range of clients in terms of size, industry, location,
16%
claims history, and other parameters. Many clients
9% experienced pricing rate changes that deviated from
8%
7% the average.
6% 6% 6%
5%
4%
Q3 21 Q4 21 Q1 22 Q2 22 Q3 21 Q4 21 Q1 22 Q2 22 Q3 21 Q4 21 Q1 22 Q2 22

US pricing: Financial and professional

lines pricing declines, excluding cyber
Insurance pricing in the second quarter of 2022 in the US increased 10%, compared to 12% in the prior quarter
(see Figures 4 and 5).
04| US composite insurance pricing change Property insurance pricing rates increased
22% 6% in the second quarter, continuing a
20% decline in the pace of increases seen for the
US 19%
18% last several quarters.
Global
• Rate increases may accelerate in
15% 15% future quarters, driven by challenging
14% 13% conditions in the reinsurance market and
reduced capacity.
11% 11% 10%
• Excess carriers looked to increase their
attachment point, putting pressure on
9%
8% buffer layers.
• Clients with significant losses or exposure
6% to secondary CAT perils typically
experienced above average increases.
• Insurers continued to focus on secondary
3% CAT perils — including wildfire, convective
2% 2% 2%
storm, and pluvial flood. The market
deteriorated for insureds with heavy
exposure to wildfire.
• Insurers scrutinized contingent time
element, especially for unnamed suppliers.

05| US composite insurance pricing change — by major coverage line • Exclusions for Russia, Ukraine, and Belarus on US-based
clients with international exposure is now the norm.
• Valuation has become a focal point for property insurers,
22% 24%
21% driven by concerns about inflation, supply chains, and
18% 19% labor shortages, as well as loss experience in cases where
15% adjusted loss amounts were well above reported values.
13%
10% 9% 10% Casualty insurance pricing increased 6%; excluding workers’
7% 7%
6% compensation, the increase was 10%.
4% 4%
US Property
3% 3% • Casualty continues to be driven by workers’

compensation, which has helped lower average overall
casualty rate increases.
9% • Excess liability pricing increased 16%, compared to 10%

8% 8% in the first quarter, but was still lower than at the same
7% 7%
5% 6% 6%
4% 4% time last year.
2% 2%
US Casualty
1% – Clients showed limited interest in increasing limits.

0% 0%
– Insurers continued to watch loss trends as the impact
-1% 34% of courts being closed during earlier stages of the
-2% pandemic subsides.
30%
28% 28% 28%
25% 25% 27% – Insurers have expressed concern regarding latency
23% 21%
risks for “forever chemicals.”
15%
11%
7%
3%
US FINPRO
2%
1% 1%

Financial and professional lines pricing rose 21% in the quarter — a decline from the first • Cyber pricing increased 79%, compared to 110% in the prior quarter and 133% in
quarter increase of 28%. Excluding cyber, financial and professional lines pricing decreased in December 2021.
the low-single digits in the second quarter.
– Insurers have begun to calibrate underwriting and pricing strategies on an account-
by-account basis rather than on a portfolio basis.
• Pricing declined 6% for directors and officers (D&O) liability coverage for publicly traded
companies, following a 3% increase in the first quarter. – Several insurers recently entered the cyber market, increasing competition.
– There was strong competition from both legacy insurers and new market entrants. – Insureds with strong cybersecurity controls may experience a stabilizing of pricing if
they have previously experienced significant rate adjustments.
– A low level of transaction business — including in IPOs and special purpose acquisition
companies (SPACs) — in the first quarter put some insurers behind their budget – Insureds lacking basic cyber hygiene can expect to see continued significant premium
targets, resulting in competitive pricing for core accounts. and retention increases, coverage restrictions, and/or overall insurability challenges.
• Fiduciary markets continued to be challenged by adverse judgements and ERISA 401k
plan excessive fee litigation.
UK pricing: Financial and professional

lines pricing moderates
Insurance pricing in the second quarter of 2022 in the UK increased 11%, compared to 20% in the first quarter
(see Figures 6 and 7).
06| UK composite insurance pricing change Property insurance pricing rates increased
6%, compared to 9% in the first quarter.
• Pricing was most challenging for

UK
clients with natural catastrophe (CAT)
22% exposures and those in the food, waste,
Global 20%
19% warehousing, and chemical industries.
18%
• There has been a noticeable absence of
major CAT losses this year.
15% 15% • More clients with low/medium hazard
14% risks experienced rate reductions.
13%
11% 11% • Some insurers sought to offset

11%
challenging exposures by packaging
9% property coverage with motor
8% and casualty.
• Underwriters demonstrated concern
6% regarding valuation, putting focus
on property damage and business
interruption estimates.
3%
2% 2% 2%

07| UK composite insurance pricing change — by major coverage line Casualty insurance pricing increased 4%, compared to a
3% increase in the prior quarter.
24%
20% • Electric vehicles impacted the automobile liability
18% insurance market, with leading insurers saying that
16%
15% damage repair costs for EVs run approximately 25%
higher than for internal combustion vehicles.
10% 11% 10%
8% 9% • Employers’ liability insurance pricing increased by 4%,
6% 6% compared to 3% in the prior quarter, driven by poor
4% claims performance among some insureds.
UK Property
3%
0%
– US exposure remained a challenge.
-1% -1% Financial and professional lines pricing experienced a
decline in some products, although the overall average
6% 6%
7% 7% 7% rate increased due to the impact of continued increases in
5% 5% cyber insurance.
UK Casualty
4% 4% 4%
3% 3%
• D&O pricing declined in the single digits in the
-2% -2% -1% second quarter.
-3% -3%
90% – The D&O market experienced substantial rate
decreases on larger multinational accounts.
71% – Midsize and smaller companies continued to

67% experience rate increases or flat renewals.
64%
57%
46% 54% • The cyber insurance market continued to be
43%
39% challenging, although the rate of increase moderated
28%
to 68%, compared to 102% in the first quarter.
23%
19% – Some insureds continued to experience increases in
15%
the triple digits.
7% 7% 7%
5% • Pricing for financial institutions (FIs) continued to
UK FINPRO
moderate as insurer competition increased.
Latin America and Caribbean pricing:

Casualty pricing increases for first time
in two years
Insurance pricing in the second quarter in the Latin America and Caribbean (LAC) region increased 5%, a decline
from 6% in the prior quarter (see Figures 8 and 9).
08| Latin America composite insurance pricing change Property insurance pricing increased 5%,
compared to an 8% rise in the previous quarter.
22%
20% • Pricing increases continued across the
Latin America 19%
18% region when facultative capacity was
needed, particularly for countries with
Global
CAT exposures.
15% 15% • In Brazil, local conditions were
14% challenging, following many years of
13%
softer market conditions compared to
11% 11%
international markets.
9% • Market uncertainty increased across the
8% region regarding political risk.
• Insurers remained disciplined and cautious
6% regarding capacity deployment.
5% Casualty insurance pricing rates increased 4%
in the second quarter, the first average increase
3%
2% 2% 2% since the first quarter of 2020.
• There was sufficient capacity for low limit,

non-complex programs.
09| Latin America composite insurance pricing change — by major coverage line • Pricing generally stabilized for large, complex
programs with high limits and exposures.
16%
15%
• In Brazil, markets showed increasing concern for long
14% tail exposures and rising claims.
10%
9% 9% 7% 8% • In Colombia, local capacity was sufficient and rates
6% 6% 5% were stable.
LAC Property
2% Financial and professional lines pricing rose 6%, down

0% 0% 0% 0% from an 11% increase in the prior quarter, driven by
cyber pricing.
-1%
• For FIs and D&O coverage, the market was
transitioning, with new capacity entering the region.
• Local market underwriting appetite
4% 4% remained conservative.
3%
LAC Casualty
2% 2% 2% 2% • Cyber insurance experienced increases above 30%.

1% 1%
0%
– Restrictions on coverage included higher retentions,
ransomware coinsurance, and sub-limits in first-
-2%
-3% -3% party coverage.
-4% -4% -4%
-5%
26%
22% 22%
17% 17% 17%
15% 15%
12%
11%
8%
7% 6%
LAC FINPRO
3% 2% 2%
1%

Continental Europe pricing: Property and

D&O lines continue to stabilize
Insurance pricing in the second quarter of 2022 in Continental Europe (CE) increased 6%, the same rate of
increase as in the first quarter (see Figures 10 and 11).
10| Continental Europe composite insurance pricing change Property insurance pricing rates in CE rose
6%, as insurer competition, particularly for
22%
insureds with low levels of loss, put downward
20%
Continental Europe 19% pressure on rates.
18%
Global • Insurer interest in offering long-term

agreements increased.
15% 15%
14%
• Inflation concerns caused insurers to
13% increase focus on adequacy of valuations
11% 11% for insured or replacement values.
• Insurers maintained strict underwriting
9%
controls and discipline regarding capacity
8%
deployment and aggregation issues,
especially for contingent business
6% interruption extensions.
6%
Casualty insurance pricing increased 7%,
compared to 6% in the first quarter.
3%
2% 2% 2%
• Pricing increases were limited by insurer
competition for new business.
• Loss-impacted renewals were most
challenging, with insurers restricting
capacity deployed on individual programs.
• Insurers demonstrated continued concern
Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 about US exposures due to severity of
losses and jury awards.
11| Continental Europe composite insurance pricing change — by major coverage line • Insurers focused on exclusionary language, for
example cyber, chemical substances, war and
20% 21% sanctions, climate change litigation, and sexual
19%
18% abuse and molestation.
16%
• Auto liability pricing increased, by double digits in
12%
10% 10% some territories.
9%
Cont. Europe Property
8% 6% 6% Financial and professional lines pricing moderated,

increasing 5% in the second quarter, down from 9% in
4% 4%
3% the prior quarter.
0%
• Stability in the D&O space continued due
-1% to increased competition from insurers and
new capacity.
7% 7% • FIs continued to experience moderating
6% 6%
5% 5% 5% 5% 5% increases; in some cases pricing was flat to
Cont. Europe Casualty
4%
3% moderate reductions.
1% • Cyber insurance pricing increased by 50%,
-1% 0% -1% 0%
compared to 80% in the prior quarter.
-2% • Concerns around systemic exposures and
accumulation risk continued to grow, with the war
24%
23%
in Ukraine a particular concern.
22% 22% 20%
14%
13%
12%
9%
5% 5%
Cont. Europe FINPRO
2% 2%
1% 1%
-2%
-3%

Pacific pricing: D&O pricing declines for

first time since 2017
Insurance pricing in the Pacific region increased 7%, down from 10% in the prior quarter and the sixth
consecutive quarterly reduction in rate increases (see Figures 12 and 13).
12| Pacific composite insurance pricing change Property insurance pricing rates increased
5%, down from 8% in the prior quarter, despite
severe flood events in Queensland and New
South Wales.
Pacific 22%
20% • Insureds in CAT zones, especially
19% flood, faced increased underwriting
Global 18%
focus, including on contingent
business interruption, deductibles, and
15% 15% risk mitigation.
14% 13% • A demonstrable commitment to
continual risk improvement was critical to
11% 11%
renewal success.
9% • Valuations have become a major

8% underwriting focus for insurers due to
7% global inflation.
6% Casualty insurance pricing rose 11%, down
from 15% in each of the three prior quarters.
3% • Insurers remained cautious due to

2% 2% 2% claims inflation; with available capacity
reduced, programs often experienced
placement challenges.
• Risk selection has been more pronounced
than in the past.
13| Pacific composite insurance pricing change — by major coverage line • Major programs underwent substantial restructuring
of layers as a result of changing underwriter appetite.
31% 31%
28% Financial and professional lines pricing rose 6%, a
23% decrease from 10% in the prior quarter.
20%
18% 18% 18%
• The 5% decrease in pricing in the D&O market was
15% 15%
13% 13% 14% the first reduction since 2017.
11%
8% 8% • Competition continued to develop, particularly for
Pacific Property
5%
excess layers, resulting in improved pricing.
• Cyber insurance remained challenging, driven by
18% frequent and severe ransomware losses.
17%
15% 15% 15% 15%
11% 11%
8% 9%
6% 6% 6% 6% 6% 6% 6%
Pacific Casualty
51%
49%
48% 48%
37%
33% 33%
28% 28%
26% 26% 25%
23% 23%
18%
10%
6%
Pacific FINPRO

Asia pricing: Pricing in second quarter

mirrors prior quarter
Insurance pricing in the second quarter of 2022 in Asia increased 3%, the same as in the prior quarter (see
Figures 14 and 15).
14| Asia composite insurance pricing change Property insurance pricing rates rose 2%, the
fifteenth consecutive quarter of increase.
Asia 22%
• Pricing increases were most acute for
20% clients with poor loss histories.
19%
Global 18% • Pricing increases for natural catastrophe
exposures continued to be above
the average.
15% 15%
• Mid-market diversification for insurers
14%
13% brought increased competition.
11% 11% Casualty insurance pricing was flat, following
increases of 2% in the prior two quarters.
9%
8% • Insureds with good loss histories generally
experienced flat pricing, while those with
poor loss histories experienced increases.
6%
• Insurer risk selection in challenged
industries contributed to reduced capacity
3%
3% and increased pricing.
2% 2% 2%
• Insurers frequently restricted capacity
on excess layers; challenges are more
pronounced for product recall and products
liability exposures.
15| Asia composite insurance pricing change — by major coverage line Financial and professional lines pricing increased 13%,
the same as in the prior quarter.
• The average rate of increase for D&O ranged from 10%

18% to 15%.
16%
12%
10%
– Capacity challenges remained for US listed
8% 8% or exposed insureds and for certain sectors
7% 7% and countries.
5% 5%
3% 2% 2% • Pricing for FIs started to moderate; insurers continued
Asia Property
1% 1% to manage capacity and retention levels.

0% 0%
• The cyber insurance market remained challenging,
with increases generally ranging from 25% to 50%
due to ransomware, claims, global market conditions,
systemic risk concerns, and geopolitical tensions.
2% 2%
Asia Casualty
1% 1% 1% 1% • Insurers continued to demonstrate caution regarding

0% 0% 0% 0% 0% 0% 0% 0% 0% digital asset/cryptocurrency related companies.
• Professional indemnity pricing increased in the 10% to
-1% -1%
15% range for large programs.
24%
23%
22%
18%
17% 17%
14%
13% 13%
8%
5% 5%
3%
Asia FINPRO
0% 0%
-1% -1%
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Global insurance markets:

14% Cyber insurance pricing continued to rise

Source: Marsh Specialty and Global Placement

02| Composite insurance pricing change — by region

US UK Cont. Europe Latin America Asia Pacific

Source: Marsh Specialty and Global Placement

Global Property Global Casualty Global FINPRO • Property insurance: 6%.

26% Please note that reported changes are averages

Source: Marsh Specialty and Global Placement

US pricing: Financial and professional

Source: Marsh Specialty and Global Placement

3% 3% • Casualty continues to be driven by workers’

9% • Excess liability pricing increased 16%, compared to 10%

1% – Clients showed limited interest in increasing limits.

Source: Marsh Specialty and Global Placement

UK pricing: Financial and professional

• Pricing was most challenging for

11% 11% • Some insurers sought to offset

Source: Marsh Specialty and Global Placement

71% – Midsize and smaller companies continued to

moderate as insurer competition increased.

Latin America and Caribbean pricing:

• There was sufficient capacity for low limit,

2% Financial and professional lines pricing rose 6%, down

2% 2% 2% 2% • Cyber insurance experienced increases above 30%.

Source: Marsh Specialty and Global Placement

Continental Europe pricing: Property and

Global • Insurer interest in offering long-term

8% 6% 6% Financial and professional lines pricing moderated,

Source: Marsh Specialty and Global Placement

Pacific pricing: D&O pricing declines for

9% • Valuations have become a major

3% • Insurers remained cautious due to

Source: Marsh Specialty and Global Placement

Asia pricing: Pricing in second quarter

• The average rate of increase for D&O ranged from 10%

1% 1% to manage capacity and retention levels.

1% 1% 1% 1% • Insurers continued to demonstrate caution regarding

Marsh is a business of Marsh McLennan.

1166 Avenue of the Americas, New York 10036

Copyright © 2022, Marsh LLC. All rights reserved. MC220726084 932101534

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