Global commercial insurance prices rose 9% in the second quarter of 2022, marking the sixth consecutive quarter in which the pace of increase moderated.
In the second quarter Asia experienced a 3% increase in composite pricing, the same as in the prior quarter. The Philippines, with a composite pricing increase of 14.2% (down from 22.1%), saw the biggest pricing moderation in the quarter.
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.
Regionally, composite pricing increases for the second quarter were as follows:
Figure 1: Asia composite insurance pricing change by country
Figure 2: Asia property insurance pricing change by country
Figure 3: Asia casualty insurance pricing change by country
o Capacity challenges remained for US listed/exposed businesses and for certain sectors and countries.
o Primary rates remained challenging to manage, with only a few markets willing to quote.
o For larger and more complex PI programs, rate increases averaged in the 10% to 15% range.
o The communications, media, and technology sector were increasingly dovetailing with the cyber market, meaning selective capacity remained.
o Appetite for the medical malpractice sector continued to be selective.
o Insurers remained wary of engaging with companies even if they were not directly or indirectly providing cryptocurrency services, but implementing distributed ledger technology in a centralised trust network application.
o Cold storage coverage tended to have greater traction in London markets, with insurers considering D&O for some of these risks, but with cyber, crime, and professional indemnity (PI) generally falling outside of their risk appetite.
Figure 4: Asia financial and professional lines insurance pricing change by country