The broker pointed out that "while this is the 16th consecutive quarter of increases, the rate of increase continues to moderate in many lines of business and in most geographies. This trend may suggest that pricing increases peaked in the fourth quarter of 2020, at 22%.
According to the survey:
- Pricing increases across most regions moderated due to a slower rate of increase in property insurance and directors' and officers' liability (D&O).
- The UK, with a composite pricing increase of 27% (down from 28% in Q2 2021) and the Pacific region, with a 17% increase (down from 23% in Q2 2021) continued to drive the global composite rate. The rate of increase in Asia was 6% (steady from the previous quarter), 2% in LAC (down from 4%), and 10% in Continental Europe (down from 13%).
- The one exception was the US where rates increased by 14% (up from 12% the previous quarter), driven by substantial increases in cyber insurance rates and a moderate increase in property and casualty rates.
- Global property insurance pricing was up 9% on average, down from a 12% increase in the first quarter 2021; casualty pricing was up 6% on average, which was the same as the previous two quarters.
- Pricing in financial and professional lines again had the highest rate of increase across the major insurance product categories, at 32%, compared to 34% in the previous quarter.
- Cyber insurance pricing continued to diverge from the moderation trend. In the US prices increased 96% in the US (up from 56% in Q2), and 73% in the UK (up from 35% in Q2), driven by the frequency and severity of ransomware claims.