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Global Insurance Market Update

Asia Insurance Pricing Q3 2022

Insurance pricing in the third quarter of 2022 in Asia increased 2%, down from 3% in the prior two quarters.
Asia city

31/10/2022

Constant bar chart represents Global Insurance Composite Pricing Change.

 
 

Asia pricing continues to moderate

Global commercial insurance prices rose 6% in the third quarter of 2022, marking the seventh consecutive quarter in which the pace of increases moderated. The index is a proprietary measure of global commercial insurance premium pricing change at renewal, representing the world’s major insurance markets and comprising nearly 90% of Marsh’s premium.

Asia experienced a 2% increase in composite pricing in the quarter, compared to 3% in the prior quarter. 

China and Korea experienced price decreases (-0.6% and -1.8% respectively), while Taiwan saw an 8.8% increase in composite pricing compared to 1.2% in the prior quarter.

The composite pricing increases in other regions for the third quarter were as follows:

  • US: 6%.
  • UK: 7%.
  • Continental Europe: 6%.
  • Latin America and the Caribbean: 5%.
  • Pacific: 5%.

Asia findings

Property insurance pricing rates in Asia rose 2% in the third quarter, the same as in the prior quarter and the sixteenth consecutive quarter of increase.  

  • Clients with challenging claims experience or those requiring support from facultative markets continued to see above average pricing increases.
  • Natural catastrophe capacity continued to drive pricing.
  • Global inflation remained a concern for insurers, with a focus on appropriate declaration of declared values by insureds.
  • The political violence market showed signs of contraction, with insurers carefully reviewing their aggregate exposures and pricing adequacy.

Full insights can be found in the Asia report.

Casualty insurance pricing was flat for the second consecutive quarter.

  • Clients with exemplary claims performance and strong risk management practices typically experienced more favourable renewals.
  • Insurers in Asia continued to be selective in deploying capacity for challenged industry segments, product recall and product liability exposure in North America.
  • Pricing for automobile liability and workers’ compensation typically decreased in the quarter in a number of territories, while holding stable in all others.
  • Insurers focused on reviewing and updating policy wordings, including regarding updated sanctions clauses and exclusions associated with per- and polyfluoroalkyl substances (“forever chemicals”), cyber risk, terrorism, punitive damages and contractual liability. 
  • Insurers took a stronger position on their environmental, social and governance requirements, with some reducing or withdrawing support based on the strength of the client’s ESG commitment and practices.

Full insights can be found in the Asia report.

Financial and professional lines pricing increased 5% in the third quarter, compared to 13% in the second quarter.

  • The pace of rate increases continued to moderate for directors and officers (D&O) liability insurance.

 - Increases in the third quarter were typically in the range of 5% to 10% across Asia.  

- Increases remained generally higher for US-listed or exposed business, as well as those with continuing capacity challenges.

  • For financial institutions (FIs), pricing increases moderated in the quarter, and was almost flat for large or complex accounts. 
  • Professional indemnity (PI) insurers were keen to explore smaller organizations, with customized offerings at competitive rates.

- Some large and/or complex PI programs, especially from the communications, media and technology (CMT) sector, experienced average rate increases, ranging from 5% to 10%, due to blended program structures with cyber coverages.

  • Insurers were cautious regarding digital-asset related companies due to systemic risks resulting in volatility in asset pricing, which can lead to sharp decreases in value, and a potential number of liquidations.

Cyber insurance remained challenging, with rate increases of 25% or more experienced by some clients.

  • Concerns continued regarding claims, systemic risk, geopolitical tensions and ransomware.
  • As in other regions, there were signs in the quarter that the cyber insurance market is stabilizing.  

Full insights can be found in the Asia report.

Global Insurance Market Index – 2022 Q3

Get the complete picture on insurance pricing in Asia and the world.

Download global report Download Asia report

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