​Global commercial insurance prices rose 11% in the first quarter of 2022. Global pricing increases peaked at 22% in the fourth quarter of 2020 and have been gradually falling since then. However, the market is still hard and underwriters are cautiously considering what they choose to cover.
In our Pacific region, composite pricing increased by 10% year-on-year over the first quarter of 2022.
It's important that LGIS members remember that a mutual approach to protection is the best way of cushioning pricing fluctuations in the in the commercial insurance market.
Against the backdrop of global price movements and market changes, LGIS is working to achieve the best outcome for the protection of WA local governments to contain contribution increased
Pacific region
Property
Floods in New South Wales and Queensland are expected to climb in excess of $3 billion which will curtail any pricing relief expected for the start of the year. The challenges for cover have increased for risks in catastrophe (CAT) zones, with flood, bushfire and storm a particular concern.
Underwriters are increasingly focused on CAT sub-limits, including contingent business interruption, deductibles, and risk mitigation.
Financial and professional
Financial and professional lines pricing rose 10%, a decrease from 18% in the prior quarter.
Pricing for directors and officers cover, the equivalent of LGIS' management liability protection, continues to level out for those accounts that witnessed significant increases.
Cyber risk insurance remained challenging. Frequent and severe ransomware losses have put pressure on pricing leading to a marked reduction in capacity and narrowing of key coverages.