Commercial insurance pricing in the Australia-led Pacific market grew 23.2% in the June quarter, weaker than the 29.4% rise seen in the preceding quarter, according to Marsh’s latest price tracking index.

Marsh says the June numbers mark the second straight quarter of moderating price growth, following a 34.6% increase in the December quarter.

Globally rates also accelerated at a slower pace, rising 15% in the June quarter from the 17.6% increase in the preceding period. It was also the second straight quarter of moderation in price growth.

Marsh says its latest Global Insurance Market Index – a proprietary measure of global commercial insurance premium pricing changes at renewal – is further confirmation that rate increases will likely moderate in the coming months having peaked in the December quarter.

The broker had said previously in its March price index update that rates may have reached a “turning point” after several quarters of record-breaking increases.

“The statistics are bearing that out,” Head of Global Placement for Asia & Pacific John Donnelly told insuranceNEWS.com.au. “It’s a global trend.

“The numbers that you see in [in the Pacific market] report are predominantly Australian so they’re not influenced by other countries in the region.”

Insurance providers have a pre-set technical rate that will produce the required levels of profitability for their businesses.

Going by the Marsh price index for the June quarter and past readings, it suggests they have reached that technical rate but there are still some lines that remain challenging, such as cyber.

“There are major challenges in the market for cyber insurance and the percentage increases that insurers are looking for on cyber insurance are really quite significant now and that's a global trend,” Mr Donnelly said.

“It’s following all the ransomware losses… so cyber insurance is going up quite substantially.”

Pacific rates for financial and professional lines, which include cyber, rose 37% in the June quarter following a 48% surge in the preceding quarter.

Directors’ and officers’ liability pricing continued to level out as more excess layer capacity Pacific property pricing increased 14% in the June quarter, slower than the 20% rise seen in the March quarter while casualty jumped 18% higher, marginally up from 17% in the earlier three-month period.

Pacific property pricing increased 14% in the June quarter, slower than the 20% rise seen in the March quarter while casualty jumped 18% higher, marginally up from 17% in the earlier three-month period.

Globally property pricing gained 12%, weaker than the 15% rise recorded in the March quarter, casualty stayed at 6% while financial and professional rates increase moderated to 34% from 40%.

Click here to access the Marsh report.