Insurance pricing in the third quarter of 2021 in Asia increased 6% year-over-year.
Asia Insurance Pricing - Q3 2021
Constant bar chart represents Global Insurance Composite Pricing Change.
Property insurance pricing rose 5%, the twelfth consecutive quarter of increase.
Capacity remained available; local markets were major contributors as elements of competition returned, focused on loss free clients in low hazard industries.
There has been a continued slowdown in rate increases compared to previous quarters, a trend expected to mcontinue into 2022.
Challenges remained for clients in high hazard industries, CAT zones, and those with poor loss histories.
Casualty insurance pricing increased 1%, remaining relatively flat as it has for the past three years.
Large losses and claims activity drove insurer behavior; risk selection was more pronounced than previously observed.
Sufficient capacity remained in the region, although challenges existed in product recall and products liability.
Financial and professional lines pricing rose 17%, the tenth consecutive quarter of increase.
Insurers focused on risk selection, driven by global underwriting guidelines and overall appetite.
Asia continued to be a fragmented marketplace, with pricing varying significantly from client to client and from country to country.
Cyber insurance remained challenging with considerable pressure on pricing and deductibles; at the same time there was a marked reduction in capacity and a narrowing of key coverages. Significant ransomware losses were the key driver.
Insurers remained selective on US-listed D&O liability, with rate increases ranging from 50% to 100% depending on the industry, client profile, and claims history.