U.S. commercial insurance pricing rose 4% in the first quarter, compared with a 3% increase in the fourth quarter of 2022 and matched the global rate of increase, according to a report from Marsh LLC on Thursday.
U.S. property insurance pricing rose 17% in the first quarter, up from 11% in the fourth quarter and 7% a year earlier. It was the 22nd consecutive quarter that pricing rose, the report said.
Casualty insurance pricing rose 2% compared to 1% in the fourth quarter and 4% last year.
Pricing for financial and professional lines fell 9%, compared to a 10% decline in the fourth quarter and a 28% increase in last year’s first quarter.
Insurers continued to express concerns about inflation and valuations as total policy values increased by 9% on average during the quarter, the report said. They also continued to limit coverage terms for some customers.
“Insurers demonstrated rigor in terms, including deductibles for catastrophe, non-physical damage, cyber, communicable disease exclusions and time element extensions,”; the report said.
Cyber insurance price increases continued to moderate significantly, falling to 11% in the first quarter, compared to 28% in the previous quarter, as new market entrants added capacity. Increased competition, improved cyber security controls and a reduction in ransomware attacks in 2022 were key factors behind the continued improvement in pricing, the report said.
Globally, commercial insurance prices rose 4% in the first quarter, matching the increase in the fourth quarter but less than half the 11% from the first quarter of 2022. Prices in the UK rose 3%, compared to 4% the previous quarter. Continental Europe saw an increase of 5%, compared to 6% in the fourth quarter.
Latin America increased by 8%, compared to 7% in the previous quarter. Asia increased 1%, compared to 2%, and the Pacific region increased 7%, compared to 5%.