Page 17 - Turkinsurance Digital Magazine

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According to Marsh’s “Global Insurance Market Index,” global commercial

insurance prices continued their moderate upward trend and increased by 4%
$ $ in the first quarter of 2023. While property prices increased in most regions,
£
£
there has been a downward trend in financial and professional insurance
prices for the past three quarters.

According to Marsh’s “Global Insurance Market In- o For three consecutive quarters, there has been a gen-
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€ € dex,” global insurance prices increased by 4% in the eral decrease in pricing in the financial and profession-
first quarter of 2023. This marks the 22nd consecutive al insurance sectors. Due to higher declines observed
$
$
quarter of increases in the global commercial insur- in the United States and the United Kingdom, average
ance market, following a 4% increase in the fourth prices decreased by 5% in the first quarter of 2023
quarter of 2022. compared to a 6% decrease in the fourth quarter.

€ € Due to the decreases in prices in the financial and pro- o Globally, cyber insurance prices maintained a slower
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fessional insurance sectors, price increases in most growth pace with an average increase of 11%, com-
regions were at lower rates compared to the previous pared to a 28% increase in the fourth quarter of 2022.
£ quarter. The slowing pace of growth in cyber markets This trend was particularly noticeable in the cyber in-
£
was balanced by the increases in property prices. In the surance markets. Prices increased by 11% in the Unit-
UK, there was a 3% composite price increase (com- ed States and 10% in the United Kingdom compared
pared to 4% in the fourth quarter of 2022), a 5% to the previous quarter.
increase in Continental Europe (down from 6%), and
a 1% increase in Asia (down from 2%). In the Ameri- o Concerns about the impact of inflation on asset values
cas, there was a 4% increase (compared to 3% in the and claims costs continue to be a focus for insurance
fourth quarter of 2022), a 7% increase in the Pacific companies. For instance, total insurance premiums
€ € (up from 5%), and an 8% increase in Latin America during renewal periods in the United States increased
and the Caribbean (up from 7%). by an average of 9% over the three-month period.

Some key findings highlighted in the report are as fol- Marsh Turkey Co-CEO Yeşim Aksüt, evaluating the
lows: findings of the report, stated, “We are pleased to see
positive trends in executive liability and cyber insur-
o In the first quarter, property insurance prices in- ance for our clients. However, ongoing losses in prop-
creased in most regions, particularly in the United erty insurance, along with increased reinsurance and
States, where they showed a 17% increase compared capital costs, coupled with resource constraints in
to the previous quarter’s 11% increase. On average, certain insurance products, mean that customers con-
global property insurance pricing increased by 10% in tinue to face challenging market conditions. To assist
the first quarter of 2023, compared to a 7% increase our clients in addressing these issues, we are exploring
in the fourth quarter of 2022. Casualty insurance pric- ways to develop new capacity in the most needed insur-
ing increased by an average of 3%, remaining at the ance products, as well as examining fixed solutions and
same rate as the previous quarter. capital market alternatives.”