This marks the 15th consecutive quarter of rate increases in the global commercial insurance market, as well as the third consecutive quarter to show a fall in the average rate of increase.
It also follows year-on-year average increases of 18% in the first quarter and 22% in the fourth quarter of 2020.
Over the period, increases across all geographies moderated due to slower rate rises in property insurance, except Europe, and financial and professional lines, except Asia and Latin America and the Caribbean (LAC).
The UK, with a composite pricing increase of 28% and the Pacific region, with a 23% increase, continued to drive the global composite rate.
The rate of increase in the US was 12% (down from 14%), in Asia 6% (down from 8%), in LAC 4% (down from 5%), and in Continental Europe 13% (down from 15%).
Global property insurance pricing was up 12% on average, down from a 15% increase in the first quarter 2021.
Meanwhile, pricing in financial and professional lines again had the highest rate of increase across the major insurance product categories, at 34%, compared to 40% in the previous quarter.
In addition, cyber insurance pricing “again diverged from the moderation trend”. Prices increased by 35% in the UK, compared to 29% in first quarter, largely driven by the frequency and severity of ransomware claims.
“Although we expect continued pressure on pricing, especially in loss affected lines, we also expect the general trend of moderating price increases to continue through the rest of the year.”