Global Insurance Market Update

Asia Pricing Q1 2022

Insurance pricing in the first quarter of 2022 in Asia increased 3%, down from 4% in the prior quarter, as price increases continue to moderate.

beautiful nanpu bridge at dusk,crosses huangpu river,shanghai,China

Pace of increase continues to decline

Insurance pricing in the first quarter of 2022 in Asia increased 3%, down from 4% in the prior quarter, as price increases continue to moderate.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing rose 2%, down from 3% in the fourth quarter of 2021.  

  • Insurer competition continued to focus on loss-free clients in low-hazard industries.
  • The market remained challenging for clients in CAT zones, high-hazard industries, and those with poor loss histories.
  • Clients in high-hazard industries and those with poor loss histories had above average increases.

Casualty insurance pricing increased 2%, as it did in the fourth quarter of 2021.

  • Large losses drove insurer behavior, and accounts with high claims frequency typically had more difficult placements.
  • Insurers started to show concern about claims inflation during the quarter.
  • Capacity continues to be plentiful in the region, however, multinational insurers are restricting capacity on excess layers. These challenges are more pronounced with product recall and products liability exposures.

Financial and professional lines pricing increased 13%, down from 17% in the prior quarter.

  • Capacity challenges remain for US-listed and US-exposed business.
  • Pricing has begun to moderate for financial institutions, though insurers continued to manage capacity and retention levels.
  • The cyber market remained challenging, with ransomware placing considerable pressure on premiums; insurers looked to manage the risk while growing their respective portfolios.
  • Professional indemnity (PI) insurers showed a willingness to retail customized offerings for small- to mid-size clients. Large PI programs, however, saw rate increases — particularly within the communications, media, and technology industry.

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”