Cyber pricing continues to moderate: Marsh
Average price increases of 1% in Q2 were a slowdown from the 11% rise in Q1 and a hike of 24% in the last three months of 2022
The slowdown in global cyber pricing was driven by average price reductions of 4% in the US market
Globally, cyber insurance pricing continued to moderate in the second quarter of the year, driven by price drops in the US, Marsh has said.
The last quarter saw average price increases of 1%, a slowdown from the 11% rise in the previous quarter and a hike of 24% in the last three months of 2022, the global broker said.
This was attributed to a “significant moderation” in the US, which saw prices drop 4% on average, compared to an average increase of 11% in the previous quarter.
Across all lines of business, Marsh’s Global Insurance Market Index showed global commercial insurance prices increased 3% on average in the second quarter, down from a rise of 4% in the first three months of the year.
Alongside cyber, there was continued downward pressure from financial lines where overall pricing fell for the fourth consecutive quarter. This was driven by rate reductions and additional capacity, particularly in the UK market, where average pricing decreased 8%, compared to a drop of 4% in the previous quarter.
This was offset by global property insurance pricing, which increased 10% on average – the same as the previous quarter.
Globally casualty pricing also increased 3%, the same as the previous quarter.
Pat Donnelly, president of Marsh Specialty and Global Placement, said while the moderation of cyber and financial lines was positive for buyers of insurance, the continued increases in the property market remained a concern.
“As we move through the second half of 2023, we are working with clients to explore a broad range of options that will help them navigate the challenges ahead amid ongoing economic, inflationary, and geopolitical uncertainty, and achieve optimal outcomes from the insurance market,” Donnelly said.
