Asia Insurance Pricing Q3 2023

Asia commercial insurance pricing was flat in the third quarter as casualty and financial and professional lines pricing declined, while cyber pricing stabilised.

Global commercial insurance prices rose 3% in the third quarter of 2023, the same as in the prior quarter. 

In Asia, Taiwan, Republic of China (R.O.C.), and the Philippines experienced the largest composite price increases, at 24% and 19% respectively, while Hong Kong SAR and Vietnam experienced the largest composite price decreases, at -7% and -6% 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 pricing in Asia increased 2% in the third quarter.

• Markets such as China and Korea experienced nominal rate decreases, although this was offset by pricing increases related to natural catastrophe exposure in the region.
• Clients in CAT-exposed geographies faced greater scrutiny from insurers. Although inflation continued to ease from the peaks of 2022, insurers remained vigilant on the impact to their portfolios and maintained requests for updated valuations.

Casualty insurance pricing in Asia declined 2% in the third quarter, reflecting abundant capacity and in-country competition.

• The Philippines and Japan experienced the largest casualty pricing increases, at 15% and 6% respectively.
• Hong Kong SAR and Korea experienced the largest casualty insurance pricing declines at -10% and -7% respectively.
• Issues at top of mind for insurers included per- and poly-fluoroalkyl substances (PFAs); bushfire liability, particularly as the El Niño weather cycle begins; product recall; North American exposure, and the claims inflation environment. 

Financial and professional lines pricing in Asia declined 3% in the third quarter as the market saw D&O rates going down from single to double digits.

• Taiwan, Republic of China (R.O.C.) and the Philippines experienced pricing increases of 6% and 2% respectively.
• Singapore, China, and Korea each experienced financial and professional lines insurance pricing declines of -5%.
• There was increased appetite and capacity available from local markets for US-listed companies, resulting in pricing competition and, in many instances, reduced rates. 

Cyber insurance pricing stabilised in Asia, remaining flat in the third quarter as the market’s risk appetite and capacity increased.

• The Philippines experienced the largest cyber insurance pricing increase at 13%. Taiwan, Republic of China (R.O.C.), Vietnam, and Thailand each saw pricing increases of 8%.
• Underwriters continued to focus on cybersecurity controls; some coverage areas continued to face greater scrutiny, especially regarding war perils, given current geopolitical tensions.