For 18 consecutive quarters, commercial insurance prices have been rising, but in the first quarter of 2022, the increases moderated, according to the Marsh Global Insurance Market Index.
According to Marsh, commercial insurance prices rose 11% globally in Q1, which is the fifth consecutive reduction in rate increase since global pricing increases peaked in the fourth quarter of 2020.
Professional and financial insurance lines showed the highest average increases at 26%, primarily driven by a 110% rise in cyber prices.
Marsh reported that 60% of its U.S. clients took higher retentions on cyber insurance to help offset the price increases. More frequent and severe cyber claims significantly drove the price increases.
In another professional line, U.S. pricing for public company directors and officers (D&O) coverage increased 3%, down significantly from prior quarters.
Additionally, Marsh says that valuation has become a focal point for insurers at renewal. Insurers are concerned about the current inflationary environment, supply chain challenges, and labor shortages.
Check out the latest Marsh Global Insurance Market Index here.
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