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Global Insurance Market Index

Asia Insurance Pricing Q4 2023

Asia commercial insurance pricing remained flat in the fourth quarter of 2023 as casualty and financial and professional lines rates declined, while cyber insurance rates remained flat.

Global commercial insurance prices rose 2% in the fourth quarter, compared to 3% in the prior two quarters.

In Asia, Taiwan, Republic of China (R.O.C.), Japan, and the Philippines experienced the largest composite price increases, at 24%, 7%, and 7% respectively, while Vietnam, Hong Kong SAR, and Korea experienced the largest composite price decreases, at -9%, -6%, and -4% 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.*

*Note: Beginning in the third quarter 2023, pricing data from India is included in the regional India, Middle East, and Africa (IMEA) section of the Global Insurance Market Index.

Access the full insights for the region in the Asia report.

Property insurance rates in Asia increased 2% in the fourth quarter as insurers slowly increased their capacity in the region.

  • Taiwan, Republic of China (R.O.C.) experienced the largest property rates increase at 28%, followed by Japan, the Philippines, and Thailand — each at 8% increase respectively. Vietnam experienced the largest property rates decrease at -10%.
  • Insurers continued to monitor catastrophe (CAT) exposures, particularly in Japan, Taiwan, Republic of China (R.O.C.) and the Philippines.

Casualty insurance rates in Asia declined 2% in the fourth quarter, while risk selection continued to be critical for insurers.

  • Japan experienced the largest casualty rates increase at 6%, while Hong Kong SAR, Korea, and Singapore experienced the largest casualty rates declines at -10%, -7%, and -6% respectively.
  • Auto liability and workers’ compensation rates remained stable, although increased claims activity was experienced in Hong Kong and Singapore.

Financial and professional lines rates in Asia declined 6%, with rates generally stable for the financial institution (FI) sector.

  • Taiwan, Republic of China (R.O.C.), the Philippines, and Thailand experienced insurance rates increases of 6%, 3%, and 2% respectively.
  • Malaysia, China, and Hong Kong SAR experienced the largest insurance rates declines, at -8%, -7%, and -7% respectively.
  • Insurers generally limited primary capacity, but increased excess layers and showed more interest in historically difficult-to-place risks, such as US-listed companies.

Cyber insurance rates remained flat, the same as in the prior quarter, as competition among insurers continued to accelerate.

  • Taiwan, Republic of China (R.O.C.), Vietnam, and Indonesia each experienced cyber insurance rates increases of 13%.
  • Singapore experienced a cyber insurance rates decline of 3%, while rates in China and Malaysia remained flat.
  • Underwriters increased scrutiny regarding dependance on digital supply chains and war exclusions.

Asia composite insurance rate change