AU, NZ insurance pricing flat in Q2

New Zealand’s property insurance pricing slightly rose due to natural catastrophes. 

Overall insurance pricing across all markets in the Australia and New Zealand remains stable, with a slight increase in New Zealand’s property insurance, according to Global Market Insights.

Whilst some products experienced flat-to-modest increases, overall insurance costs increased due to changes in the property market which dominated the New Zealand insurance market.

Insurance capacity was deemed sufficient but remained constrained in natural catastrophe exposed locations, impacting insurer risk appetite in key areas, Global Markets Insights said.

The growing trend of introducing London market capacity on larger programmes has increased competitive tension in pricing negotiations.

In Australia, inflationary pressure drove modest price increases for Auto and Liability, whilst Directors and Officers and Cyber experienced favorable pricing conditions due to increased competition. 

Property pricing softened in the latter part of the quarter, although non-targeted business continued to experience upward rate pressure.