Asia Insurance Market Rates

Property insurance rates decline, insurer competition increases

Property insurance rates declined 2%.  

• Insurer competition increased for property risks, contributing to a second consecutive quarter of year-over-year rate decreases.
• Although some clients experienced reductions, rates continued to increase moderately for risks that are highly exposed to natural catastrophe events.
• Insurers continued to monitor inflation and the accuracy of declared values, including for business interruption.
• There was an increased engagement of captives and other alternative risk solutions from clients considering or undergoing program restructuring as they sought to manage costs. This could involve retaining more risk, particularly in the loss-exposed layers of programs.

Casualty rates decline

Casualty insurance rates declined 1%.

• The amount of available capacity remained stable, although there were a small number of new market entrants.
• Underwriters continued to scrutinize North American exposures.
• Auto liability and workers’ compensation rates remained stable.
  • Increased claims activity was observed in Hong Kong and Singapore.

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

Financial and professional lines rates declined 9%.

• Directors and officers (D&O) liability rates continued to drive conditions in the overall financial and professional lines. 
  • Ample available capacity for D&O coverage led to increased competition. 
  • Some markets — including China, Hong Kong, South Korea, and Singapore — experienced average double-digit rate decreases in D&O liability renewals.
• A lack of activity in the capital markets has limited insurers’ opportunities for new business, resulting in increased competition at renewal. 
• Rates for financial institutions (FIs) and professional indemnity (PI) insurance declined in the 10% to 15% range, on average.

Cyber rates decline, controls improve

Cyber insurance rates decreased 6%.

• New capacity in the Singapore market and growing interest from the London market contributed to increased capacity and competition.
• Underwriters continued to require strong cybersecurity controls and/or plans for improvements. 
  • Insurers were generally more flexible in how cybersecurity-related information was delivered to them. 
• Insurers continued to increase their focus on risks associated with AI usage.
• Insurers were generally more willing to offer broader coverages.