According to a recent Goldman Sachs report, commercial pricing is expected to continue to show modest deceleration in the quarter. This is mainly due to higher investment yields and improved underwriting over the past several years which have modestly outweigh ongoing inflationary pressures.
Analysts noted that in the first two months of 2022’s third quarter, MarketScout and Ivans’ pricing indices showed about -100bps/+10bps rate changes quarter-on-quarter. In their view, reported pricing from covered standard lines insurers will likely be somewhere in between the two surveys (less than 1pp of deceleration).
