Global commercial insurance prices rose 4% in the fourth quarter of 2022, compared with 6% in the previous quarter, according to the Marsh Global Insurance Market Index, released by the brokerage on Thursday.
The fourth quarter marked the 21st consecutive quarter in which composite prices rose, the longest run of gains since the index began in 2012, according to the Marsh report.
However, the overall rate of price increases slowed for the eighth consecutive quarter. Commercial insurance price increases peaked at 22% in the fourth quarter of 2020.
The quarter’s price moderation was largely driven by a 6% decline in financial and professional lines and the continued moderation in cyber prices, according to Marsh.
For the second consecutive quarter, overall prices in financial and professional lines fell, driven by further rate cuts in the US, UK and Australia. Average prices in this sector fell by 6% in the fourth quarter compared to 1% in the third quarter.
Increases for cyber insurance prices also slowed, to 28% in the fourth quarter of 2022, compared to 53% in the third quarter. Increases in commercial cyber insurance rates in the US moderated to 28%, from 48% in the third quarter, and in the UK to 34%, from 66% in the third quarter, the report said.
Global property insurance prices were up 7% on average in the fourth quarter of 2022, compared to a 6% increase in the previous quarter. Casualty prices were on average 3% higher, compared to 4% in the third quarter.
In the US, property insurance prices rose 11% in the fourth quarter, up from 8% in the third quarter, marking the 21st consecutive quarter of rising property prices. Total insured values rose by an average of 10% in the fourth quarter.
The U.S. real estate gains were driven by reinsurance markets, Marsh said. “The price increases experienced by customers were largely driven by challenges in the reinsurance market leading up to the contract renewals on January 1.”
