US pricing: Increases continue at slower pace

Insurance pricing in the second quarter of 2021 in the US increased 12%, year-over-year. Although pricing continued to increase, the rate of increase slowed for the third consecutive quarter.

Property insurance pricing increased by 9%, the fifteenth consecutive quarter of increase.

• Property insurance pricing generally decelerated each month this year; falling from an 18% increase in January to 7% in June.
• Clients with significant losses, poor risk quality, or significant exposure to secondary catastrophe (CAT) perils generally experienced above average increases.
• The market deteriorated for clients heavily exposed to wildfire.
• Insurers continued to scrutinize terms and conditions including deductibles, cyber and communicable disease exclusions, and time element extensions.

04 | US composite insurance pricing change