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