5 Global insurance markets: Financial and professional lines pricing declines US pricing: Property insurance rises at increased pace Insurance pricing in the third quarter of 2022 in the US increased by 5%, compared to 10% in the prior quarter (see Figures 4 and 5). Property insurance pricing increased 8% in the third quarter, up from 6% in the second; 04| US composite insurance pricing change this is the twentieth consecutive quarter in which pricing rose. US • Exposure growth, or total insured 22% values, increased by 8% in the quarter. Global 20% • The rate increases experienced by 19% 18% clients in the third quarter were driven by changes in the treaty and facultative reinsurance markets at mid-year. 15% 15% • Valuation was a focal point for property 14% 13% insurers on virtually every renewal, due 11% 11% largely to concerns about the current in昀氀ationary environment, supply chain 9% challenges, labor shortages, and loss 8% experience where adjusted loss amounts were well above the reported values. 6% 6% Casualty insurance pricing increased 3% compared to a rise of 6% in the prior 5% quarter; excluding workers’ compensation, 3% the increase was 5%. 2% 2% • Insurers carefully monitored areas including in昀氀ation, court systems reopening, increased numbers of vehicles on the road, and Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 recent hurricanes. Source: Marsh Specialty and Global Placement