According to the report, continued to be relatively consistent across almost all regions in Q3. As with Q2, this was driven largely by a continuation of the trend for rate decreases in financial and professional lines and a small decrease for prices in the cyber insurance market. This was offset by property insurance increases, most notably in the US where property prices rose on average by 14%.
In the US, prices rose overall by 4% on average, the same as the previous two quarters. In Latin America and the Caribbean pricing increased by 10% (up from 8% in Q2), increased in Europe by 4% (down from 5% in Q2), increased by 1% in Pacific (down from 2%) and were flat in Asia (the same as in Q2). In the UK, composite pricing decreased by 1% (compared to a 1% increase in Q2). For the first time, the Global Insurance Market Index is separately reporting results for Canada, where prices in Q3 decreased by 1%, and India, Middle East & Africa, which recorded an increase of 3%.
Among other findings, the survey noted:
- Global property insurance pricing was up 7%, on average, in the third quarter of 2023, a fall from an increase of 10% in the previous quarter; casualty insurance pricing increased 3%, the same as the previous three quarters.
- For the fifth consecutive quarter, overall average pricing for financial and professional lines fell. Driven by rate reductions and additional capacity – particularly in the UK – average pricing decreased by 6% in the third quarter, compared to a decline of 8% in Q2.
- Globally, cyber insurance pricing decreased by 2%, compared to a 1% increase in the prior quarter. This is the first quarter to record an average decrease since the second half of 2018.
- Insurers in most regions remain concerned about the impact of inflation on asset values and claims costs during renewal discussions.
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