Asia commercial insurance pricing remained flat in the second quarter, compared to a 1% increase in the prior quarter
Global commercial insurance prices rose 3% in the second quarter of 2023, compared to 4% in the first quarter.
Taiwan and the Philippines experienced the largest composite price increases, at 24.5% and 18.6% respectively, while Hong Kong and China experienced the largest composite price decreases, at -6.6% and -2.1% respectively.
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.
Access the full insights for 12 Asian markets in the Asia report.
Property insurance pricing in Asia increased 2% in the second quarter, the same as in the prior five quarters.
- Taiwan and the Philippines experienced the largest property insurance pricing increases, at 27.5% and 20.0% respectively.
- Insurers continued to closely monitor exposures in natural catastrophe exposed territories; the inflationary environment, typically requesting updated valuations; and contingent business interruption and cyber coverage, restricting terms in some cases.
Casualty insurance pricing in Asia declined 3% in the second quarter, compared to a decline of 2% in the prior quarter.
- The Philippines and Taiwan experienced the largest casualty insurance pricing increases, at 12.0% and 6.9% respectively.
- Hong Kong and Korea experienced the largest casualty insurance pricing declines at -9.8% and -7.0% respectively.
- Insurers remained focused on claims inflation resulting from litigation trends, as well as material cost inflation.
Financial and professional lines pricing in Asia declined 5% in the quarter, after being flat in the prior quarter.
- India, Taiwan and Japan experienced the largest pricing increases of 9.0%, 5.5% and 3.8% respectively.
- China, Hong Kong and Korea experienced the largest financial and professional lines insurance pricing declines at -13.5%, -7.5% and -4.5% respectively.
- Pricing in the financial institution (FI) lines generally declined, aside from the crime policies.
Cyber insurance pricing generally stabilised in Asia, increasing 8% in the second quarter, the same as in the prior quarter as new market entrants increased competition.
- India, Taiwan and the Philippines experienced the largest cyber insurance pricing increases at 22.5%, 17.5% and 12.5% respectively.
- Insurer concerns regarding ransomware continued. However, as companies generally improved risk management in this area, there was a reduction in claims frequency.