US insurance pricing ‘rational’ in Q4; US market up ca. 9%: Gallagher

US insurance pricing combining rate and exposure is up about 9% in the fourth quarter, led by property and umbrella coverage on what appears to be a “rational marketplace,” a top brokerage official from AJ Gallagher has said.

“Here in the US, we believe that pricing challenges for our clients still exist,” Mike Pesch, AJ Gallagher’s CEO for US brokerage services, told his company’s investor day gathering.

To date in Q4, Gallagher sees rate and exposure combined at “about 9%” above prior year levels. Property is up about 18%, umbrella by 13%, general liability by 7% and workers compensation by 3%, he said. Clients are getting “some relief” in D&O and cyber.

“The punch line here really is that we are seeing a rational marketplace form our carrier partners,” Pesch said. “It’s rational, but overall rate and exposure 9%.”

The Canadian market also looks “rational” with more of the hardening already out of its system and combined rate and exposure growth around 5%, Patrick M. Gallagher, the group’s chief of global retail and the Americas, added for conference participants.

UK renewal premiums are up some 8%, down from gains in the 9-12% range over the first three quarters, he added. UK property is said to be up some 10% driven by inflation and “carriers pushing for rate adequacy.”  UK D&O and professional line covers are said to be up mid-single digits.