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Global Insurance Market Index

Asia Pricing Q4 2021

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.

Asia Insurance Market Pricing: 2021 Fourth Quarter Update

Global commercial insurance prices rose 13% in the fourth quarter of 2021, a decline from the 15% increase in the prior two quarters, according to the Marsh Global Insurance Market Index. In Asia, prices increased 4% year-over-year, continuing a moderation in the rate of increase that began in the third quarter of 2020. 

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. Global composite pricing increases peaked in the fourth quarter of 2020, at 22%. 

Increases were again seen across all geographies and most major product lines in the fourth quarter of 2021. Regionally, composite pricing increases for the fourth quarter were as follows: 

  • Asia: 4% 
  • US: 14%
  • UK: 22%
  • Continental Europe: 9%
  • Latin America and the Caribbean: 4%
  • Pacific: 13%

Among other findings, the survey noted:

  • Global property insurance pricing was up 8% on average, down from the 9% increase in the third quarter 2021; casualty pricing was up 5% on average, down from 6% in the third quarter.
  • Pricing in financial and professional lines had the highest rate of increase across the major insurance product categories, at 31%, compared to 32% in the third quarter.
  • Cyber insurance pricing again bucked the moderation trend and rose significantly in the quarter — up 130% in the US and 92% in the UK — driven by the frequency and severity of ransomware claims. 

Asia Findings

Property insurance pricing across Asia rose 3%, down from 5% in the prior quarter. It was the thirteenth consecutive quarter of increase. 

  • Local insurance markets remained competitive as they were generally insulated from global loss activity.  
  • Insurer competition continued to increase, particularly for loss-free clients in low-hazard industries.
  • The property insurance market remained challenging for clients in catastrophe (CAT) zones, high-hazard industries, and those with poor loss histories.

Casualty insurance pricing increased 2%, a slight uptick from 1% in the third quarter. Casualty pricing has remained relatively flat for three years.

  •  Clients with large losses and high claims frequency typically had more difficult placements, including changes in terms, conditions, and deductibles.
  • Capacity continued to be generally sufficient.  
  • Multinational insurers restricted capacity on excess layers, particularly with product recall and products liability exposures.
  • Global claims activity and insurers’ tightening of control around capacity deployment is likely to shape pricing in 2022.

Financial and professional lines pricing rose 17%, the same as in the third quarter. It was the eleventh consecutive quarter of increase.

  • Insurers focused on risk selection, with directors and officers (D&O) liability coverage for large organizations driving a significant portion of pricing increases.
  • Asia continued to be a fragmented marketplace, with pricing movements not aligned between clients and countries. 
  • Cyber risk, driven by ransomware losses, remained the most challenging coverage area, with increased pressure on pricing, 

Constant bar chart represents Global Insurance Composite Pricing Change.

Please note that Marsh PB Co., Ltd and Marsh McLennan are not engaged by nor involved in any manner with Bonus Ranch and its promotion, and has not placed any insurance for nor insured any of its businesses or operations. Marsh as a licensed insurance broker will not request customers to make payment via non-standard methods, such as the transfer of money to any individual’s bank account.