Asia Insurance Market Rates

Property insurance rates decline, insurer competition increases

Property insurance rates declined 3%.

• Despite limited capacity entering the region, increased competition among existing insurers resulted in continued downward pressure on rates across most segments, industries, and geographies, except for Taiwan, Republic of China (R.O.C.).
• Long-term agreements (LTAs) were offered, generally with second year rate reductions built in.
• Insurers showed more flexibility around deductibles and coverage throughout the quarter.
• International and wholesale insurers continued to contribute to competition, resulting in generally improved renewal outcomes for clients in local, regional, and global programs.
  • Insurers maintained focus on exposure to natural catastrophes.
• Clients showed increased interest in non-traditional risk transfer solutions, such as parametric insurance and captives.

Casualty rates decline, capacity stable

Casualty insurance rates declined 2%.

• Available capacity remained stable.
• Local and international underwriters continued to focus on North American exposures.
  • Heightened disclosure requirements typically led to a longer underwriting process and different terms for clients with North American exposure.
• Increased claims activity was observed in the region for automotive liability and workers’ compensation, however rates remained stable on average.
  • Insurers remained focused on US exposures and per- and polyfluoroalkyl substances (PFAS).

Financial and professional lines rates decline, led by D&O

Financial and professional lines rates declined 10%.

• Directors and officers (D&O) liability rates continued to drive overall rate changes in financial and professional lines, with double-digit decreases observed in most markets across the region.
  • Some insurers were willing to offer decreases in the 20% to 30% range due to increased competition.
• Continued lack of activity in the capital markets limited insurers' opportunities for new business, resulting in increased competition for renewable business.
• The largest rate decreases were observed in China, with an average decrease of 15% to 20%, due to a higher concentration of US-listed businesses, which tend to attract more capacity and competition.
• New market entrants continued to build their portfolios.
• Insurers from London and Bermuda started to quote for risks that were previously only covered with high excess, such as US-listed companies with Asian risk exposures.
• Rates for financial institutions (FIs) and professional indemnity (PI) insurance remained stable.

Cyber rates decline, controls improve

Cyber insurance rates decreased 7%.

• Cyber insurance remained a growth area for insurers in the region, while rate reductions, increased capacity, and insurer willingness to expand coverage have created a favorable environment for buyers.
• The CrowdStrike outage raised concerns for some insurers; however, its impact on the market was limited due to a relatively short remediation process and the uptake rate on technology failure extensions related to network interruption insuring clauses.
• Competition remined strong, with insurers typically targeting primary positions and/or lower attachments.
• Underwriters appeared generally satisfied with the level of detail provided in application forms but continued to scrutinize vendor management.

Our rates reflect the segment mix of Marsh’s client portfolio.