The broker pointed out that "it's the 15th consecutive quarter of rate increases in the global commercial insurance market. It also marks the third consecutive quarter to show a fall in the average rate of increase and follows year-on-year average increases of 18% in the first quarter and 22% in the fourth quarter of 2020".
According to the survey:
- Increases across all geographies moderated due to slower rate rises in property insurance, except Europe, and financial and professional lines, except Asia and Latin America and the Caribbean (LAC).
- The UK, with a composite pricing increase of 28% (down from 35% in Q1 2021) and the Pacific region, with a 23% increase (down from 29% in Q1 2021) continued to drive the global composite rate.
- The rate of increase in the US was 12% (down from 14%), in Asia 6% (down from 8%), in LAC 4% (down from 5%), and in Continental Europe 13% (down from 15%).
- Global property insurance pricing was up 12% on average, down from the 15% increase in the first quarter 2021; casualty pricing was up 6% on average, which was the same as the prior quarter.
- Pricing in financial and professional lines again had the highest rate of increase across the major insurance product categories, at 34%, compared to 40% in the previous quarter.
- Cyber insurance pricing again diverged from the moderation trend. In the US prices increased 56% in the US, compared to 35% in Q1, and 35% in the UK, compared to 29% in first quarter, driven by the frequency and severity of ransomware claims.