Insurance pricing in Asia rose 3% during the second quarter of the year, according to the latest Global Insurance Market Index by Marsh, mirroring the increase seen in the previous quarter.
Casualty insurance pricing remained flat on average following a 2% increase in the quarter prior. This flat pricing was generally experienced by insureds with good loss histories, while those with poor loss histories saw prices rise. Additionally, risk selection in “challenged industries” drove capacity reduction and price increases. Insurers also restricted capacity on excess layers frequently, causing challenges to be “more pronounced” for products liability exposures and product recall.
Pricing rates for property insurance, meanwhile, marked 15 consecutive quarters of average increase as it climbed 2%. Clients with poor loss histories felt increases “most acutely,” and natural catastrophe exposures had price increases that continued to be above average, the report said. The diversifying mid-market also brought increased competition among insurers.
Finally, financial and professional lines pricing in Asia increased 13%, marking a change that’s similar to the previous quarter. D&O saw an average rate increase of 10% to 15% as capacity challenges remained for certain sectors and countries, as well as US listed or exposed insureds. Similarly, professional indemnity increased between 10% and 15% for large programs, while FIs saw pricing start to moderate with insurers continuing to manage capacity and retention levels.
Within financial and professional lines, it was the cyber insurance market that saw the most challenges this quarter, with increases ranging from 25% to 30% due to “ransomware, claims, global market conditions, systemic risk concerns, and geopolitical tensions,” the report said.