Global Insurance Market Index

Asia Pricing Q3 2021

Insurance pricing in the third quarter of 2021 in Asia increased 6% year-over-year.

Asia Pricing: Property Increases Moderate

Insurance pricing in the third quarter of 2021 in Asia increased 6% year-over-year.

Asia Insurance Pricing - Q3 2021

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing rose 5%, the twelfth consecutive quarter of increase.

  • Capacity remained available; local markets were major contributors as elements of competition returned, focused on loss free clients in low hazard industries.
  • There has been a continued slowdown in rate increases compared to previous quarters, a trend expected to mcontinue into 2022.
  • Challenges remained for clients in high hazard industries, CAT zones, and those with poor loss histories.

Casualty insurance pricing increased 1%, remaining relatively flat as it has for the past three years.

  • Large losses and claims activity drove insurer behavior; risk selection was more pronounced than previously observed.
  • Sufficient capacity remained in the region, although challenges existed in product recall and products liability.

Financial and professional lines pricing rose 17%, the tenth consecutive quarter of increase.

  • Insurers focused on risk selection, driven by global underwriting guidelines and overall appetite.
  • Asia continued to be a fragmented marketplace, with pricing varying significantly from client to client and from country to country.
  • Cyber insurance remained challenging with considerable pressure on pricing and deductibles; at the same time there was a marked reduction in capacity and a narrowing of key coverages. Significant ransomware losses were the key driver.
  • Insurers remained selective on US-listed D&O liability, with rate increases ranging from 50% to 100% depending on the industry, client profile, and claims history.

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.”