Insurance pricing in the fourth quarter in Asia increased 2%, the same as in in the prior quarter.
Constant bar chart represents Global Insurance Composite Pricing Change.
Property insurance pricing rose 2%, the same as in the third quarter.
Due to continued concerns regarding inflation, insurers maintained focus on updated and validated valuations of assets and business interruption calculations.
Underwriters continued to focus on CAT and secondary CAT perils.
Renewal results again favored clients with exemplary claims performance and strong risk management practices.
Casualty insurance pricing declined 1% in the fourth quarter.
Casualty pricing in Asia decreased in the fourth quarter for most industry segments; however, some experienced tightening of terms and conditions.
The market remained challenging for product recall and US-exposed product liability, with capacity being secured from London subject to its pricing and conditions requirements.
Auto liability and workers’ compensation renewals experienced decreased pricing in a number of territories, and held stable in others.
Insurers continued to demonstrate caution due to claims inflation resulting from litigation trends and material cost increases.
Insurers continued to focus on updating policy wordings, ensuring the application of updated sanctions clauses and exclusions associated with per- and polyfluoroalkyl substances (PFAS), cyber, terrorism, punitive damages, and contractual liability.
Financial and professional lines pricing increased 2%, compared to 5% in the prior quarter.
D&O rates began to stabilize, with non-US-exposed businesses experiencing decreases of up to 10%.
Additional capacity entered the market; combined with 2022’s low level of IPOs, SPACs, and deSPACs, this generated strong competition on traditional risks.
Pricing began to moderate for FIs and was considered stable for large and complex accounts.
Cyber insurance pricingincreased 22%, an improvement from recent quarters.
Conditions in the cyber market continued to improve as new entrants drove an increase in capacity, markets actively indicated a desire to grow their portfolios, and many clients were able to eliminate sub-limit and coinsurance requirements around ransomware (usually for an additional premium).
Clients in specific industries remained vulnerable to wholesale insurer appetite changes to their industry.
Due to claims activity, telecommunication clients experienced a pullback in appetite for cyber and tech E&O risk, resulting in pricing increases above average.