Asia commercial insurance pricing increases continue to moderate
Global commercial insurance prices rose 4% in the first quarter of 2023, the same as in the fourth quarter of 2022. Asia experienced a 1% increase in composite pricing, compared to 2% in the fourth quarter of 2022.
Taiwan and the Philippines experienced the largest composite price increases, at 19.8% and 19.7% respectively, while China and Hong Kong experienced the largest composite price decreases, at -2.5% and -1.6% respectively.
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Property insurance pricing in Asia increased 2% in the first quarter, the same as in the prior four quarters.
- Taiwan and the Philippines experienced the largest property insurance pricing increases, both at 22.5%, followed by Thailand at 7.5%. China and Hong Kong experienced the largest pricing decreases of -2.5% and -1.5% respectively.
- The January reinsurance natural catastrophe treaty renewals in the region were challenging for most insurers and affected retentions and pricing. Renewal results favored companies with exemplary claims performance, limited CAT exposure, and strong risk management practices.
Casualty insurance pricing in Asia declined 2% in the first quarter, compared to a decline of 1% in the prior quarter.
- The Philippines, Singapore, and Taiwan experienced the largest casualty insurance pricing increases at 7.1%, 3.5%, and 3.1% respectively.
- Hong Kong, China and Korea experienced the largest pricing decreases of -6.4%, -2.4% and -2.3% respectively.
- Casualty insurers looked to increase pricing in the first quarter; however, an abundance of capacity led to significant competition, both domestically and internationally, with rates generally maintained at expiring, or in some cases reduced.
Financial and professional lines pricing in Asia was flat in the first quarter, compared to a 2% increase in the prior quarter.
- India, Hong Kong, and Taiwan experienced the largest financial and professional lines insurance pricing increases at 12.3%, 5.5%, and 5.5% respectively.
- The Philippines, Singapore, and China experienced the largest pricing decreases of -12.5%, -5.3%, and -3.0% respectively.
- Directors and officers (D&O) liability insurance pricing began to stabilize in the first quarter; most non-US exposed business have seen decreases of up to 10%.
Cyber insurance pricing in Asia increased 8% in the first quarter, compared to 22% in the prior quarter.
- Thailand, India, and Hong Kong experienced the largest cyber insurance pricing increases at 50.0%, 17.5%, and 17.5% respectively. The Philippines experienced the largest pricing decrease of -17.5%.
- Insurer demands for more detailed submission information has helped improve cyber risk management and provided greater clarity of some companies’ cyber exposures.