P&C rates increases continuing in 2022, says AJ Gallagher
P&C insurance rates show no sign of slowing in 2022 with recent drivers of the hard market still in place or intensifying, according to Arthur J Gallagher.
The broker’s CEO Patrick Gallagher said that rate increases in renewal contracts in the first two months of 2022 were about 7.5%, broadly in line with increases in 2021.
“We aren’t seeing a meaningful rate slowdown,” he told an investor call. “Pricing continues to increase in nearly all geographies and product lines around the globe.”
According to AJ Gallagher, loss frequency is rising in many lines post-pandemic and claims inflation has been spiking. Cyber also continues to stand out as seeing the tightest capacity constraints and strongest rate gains.
“Our risk-bearing partners remain cautious,” said Gallagher. Russia’s invasion of Ukraine could exacerbate that, he added.
“We see difficult P&C market conditions continuing at least through 2022,” concluded Gallagher.