According to research from Marsh’s Global Market Index, commercial insurance prices scaled globally by 4% in the first quarter of 2023, matching the rate of the last quarter of 2022.
Although price hikes in the majority of regions moved within a narrow range when compared to the previous quarter, the insurance broker and risk advisory firm claims that this is the 22nd quarter in a row of rate rises.
According to Marsh, increases in property rates more than offset losses in financial and professional lines and ongoing moderation in the cyber market. Most regions saw an increase in the price of property insurance in the first quarter, headed by the US, where prices grew by 17% compared to an 11% increase in the previous quarter.
Globally, the cost of cyber insurance remained stable, with average price increases of 11% as opposed to 2% in Q4.
According to the report, insurers are still worried about how inflation would affect the costs of paying claims and asset values. In the US, for instance, the average total insured value at renewal rose by 9% in Q1.
“We welcome the positive trends for our clients in D&O and cyber,” says Lucy Clarke, president of Marsh Specialty and Global Placement, “but continued loss activity in property lines, an increase in the cost of reinsurance and capital, combined with scarcity in certain lines, means that clients continue to face challenging market conditions.”
