The insurance broker and risk advisor noted this was the same rate of increase that was recorded in the previous quarter, and the 16th consecutive quarter of increases overall.
It found that the rate of increase continued to moderate in many lines of business and in most geographies, however, suggesting that pricing increases peaked in the fourth quarter of 2020 at 22%.
Pricing increases across most regions reportedly moderated due to a slower rate of increase in property insurance and directors’ and officers’ liability (D&O).
The UK, with a composite pricing increase of 27%, down from 28% in Q2, and the Pacific region, with a 17% increase, down from 23% in Q2, continued to drive the global composite rate.
Global property insurance pricing was up 9% on average, down from a 12% increase in the first quarter 2021, while casualty pricing was up 6% on average, which was the same as the previous two quarters.
Meanwhile, pricing in financial and professional lines had the highest rate of increase across the major insurance product categories at 32%, compared to 34% in the previous quarter.
Finally, cyber insurance pricing “continued to diverge from the moderation trend”, increasing 96% in the US and 73% in the UK, largely driven by the “frequency and severity” of ransomware claims.
Lucy Clarke, president, Marsh Specialty and Marsh Global Placement, said: “While the risk and insurance landscape remains challenging around the world, we expect rates to continue to moderate in most lines. However, the pressure on rates in cyber insurance is likely to continue. Developing solutions for our clients in this segment remains a top priority for Marsh.”