Asia Pricing Q4 2021

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.

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.