Insurance pricing in the fourth quarter of 2021 in Asia increased 4% year-over-year, continuing a slowing of increases that began in the third quarter of 2020.
Asia Pricing: Pace of Increase Continues to Decline
Insurance pricing in the fourth quarter of 2021 in Asia increased 4% year-over-year, continuing a slowing of increases that began in the third quarter of 2020.
Constant bar chart represents Global Insurance Composite Pricing Change.
Property insurance pricing rose 3%, down from 5% in the third quarter.
Elements of insurer competition continued to return, focused 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.
Casualty insurance pricing increased 2%, a slight uptick from three years of relatively flat pricing.
Clients with high claims frequency typically had more difficult placements.
Capacity continued to be plentiful; however, multinational insurers restricted capacity on excess layers, particularly with product recall and products liability exposures.
Financial and professional lines pricing rose 17%, the same as in the third quarter.
Insurers focused on risk selection, with D&O accounting for a significant portion of pricing increases.
Cyber remained the most challenging coverage area, driven by ransomware claims, with considerable pressure on pricing and deductibles, a reduction in capacity, and narrowing of key coverages.