UK commercial insurance prices see slight rise

UK commercial insurance prices across all lines of business in 2023 have risen at a similar rate compared to the end of last year, according to new data.

Insurance broker Marsh has today (27 April 2023) released its Global Insurance Market Index, which analysed pricing between the last quarter of 2022 and the first quarter in 2023.

It found pricing increases across most regions moved within a small range compared to the previous quarter.

In the UK, insurance pricing increased by an average of 3% in the first quarter of 2023, compared to 4% in the prior quarter.

It found property insurance rose 7%, while environmental, social, and governance (ESG) remained a focus in 2023.

The report also revealed cyber insurance pricing increases moderated to 10% in the first quarter of 2023, compared to 34% in the fourth quarter of 2022.

Financial and professional lines pricing also declined 4%, the same as in the previous quarter.

“While certain industries continued to experience relatively elevated pricing increases, the overall market has seen increased competition from incumbent carriers and new entrants in the UK and internationally,” the report said.

Global picture

Globally, commercial insurance prices increased 4% in the first quarter of 2023, the same rate as the fourth quarter of 2022.

The report said concerns about the impact of inflation on asset values and claims costs continued to be a focus for insurers.

Lucy Clarke, president of Marsh specialty and global placement, said: “We welcome the favorable trends for our clients in D&O and cyber, but continued loss activity in property lines and an increase in the cost of reinsurance and capital, combined with scarcity in certain lines, means that clients continue to face challenging market conditions. 

“To help our clients address these issues, we continue to explore ways to bring new capacity to lines where it is most needed, as well as examining captive solutions and capital market alternatives.”