Global Insurance Market Update
Asia Insurance Pricing Q4 2022
Insurance composite pricing in Asia continued to moderate, in line with the global trend.
- Global commercial insurance prices rose 4% in the fourth quarter of 2022, compared to 6% in the third quarter. Asia experienced a 2% increase in composite pricing, compared to 2% in the third quarter.
- Taiwan, Vietnam and Thailand experienced the highest price increases (+15%, +6.6% and +2.7% respectively), while Malaysia saw a -5.1% decrease compared to the prior quarter.
Full insights can be found in the Asia report.
Property insurance pricing in Asia increased 2% in the fourth quarter, the same as in the prior three quarters.
- Reinsurance treaty renewals on January 1 were challenging as insurers — domestic and international — were impacted by rising costs, increased retentions, and coverage restrictions. There is an expectation that insurers will pass on these impacts to clients.
Casualty pricing in Asia decreased 1% in the fourth quarter for most industry segments.
- Singapore and Indonesia experienced highest price decreases (-3.8% and -2.9% respectively) compared to the prior quarter.
- Some segments saw some tightening of terms and conditions. Insurers remained cautious due to claims inflation resulting from litigation trends, as well as rising materials costs.
Financial and professional lines pricing increased 2%, compared to 5% in the third quarter.
- Singapore, Philippines and Malaysia experienced the highest price decreases (-11.5%, -5.7% and -5% respectively), while Hong Kong saw a 3.8% increase compared to the prior quarter.
- Directors and officers (D&O) liability pricing stabilized in the fourth quarter; non-US-exposed business experienced decreases of up to 10%.
Cyber insurance pricing increases moderated to 22% in the quarter.
- Taiwan, Singapore and Thailand experienced highest price increases (+35%, +30% and +27.5% respectively).
- Cyber insurance stabilization was also indicated by new market entrants and capacity, insurers indicating a desire to increase business, and the ability to eliminate sub-limits and coinsurance requirements around ransomware (usually for an additional premium).