China’s insurance pricing goes down in Q2

Automobile insurance felt ‘contraints’ in capacity. 

China’s overall insurance pricing went downward in the second quarter (Q2 2024), as competition pressured the pricing, especially for risks with favourable loss histories, according to AON's Q2 2024 Global Insurance Market Insights Report. 

Moreover, the market condition in Automobile insurance was overall moderate, but policies written with a Premium Increase Limitation clause faced reduced appetite and capacity as insurers focused on well-performing risks.

However, market conditions were generally favourable, even as risks continued to become more complex and nuanced.

Capacity was generally sufficient for most risks; however, challenging risk types and some geographies experienced capacity limitations, particularly for natural catastrophe-exposed property risks.

Underwriting was mostly prudent and focused on profitability for segments like Automobile, Cyber, and Property.

Casualty/Liability conditions were favourable as competition increased for some risks.

Directors' and Officers' insurance capacity remains abundant in market conditions, including significant rate reductions and flexible underwriting. 

Cyber insurance continued to have a moderate market condition, characterised by flat renewal pricing and the availability of new capacity.

Insurers introduced more localised solutions, including coverage extensions and incident response services, and underwriters continued to scrutinize ransomware and connectivity across global operations. 

Furthermore, property insurance was seen as 'soft’ and, across all risk types, underwriting remained prudent as insurers focused on building more profitable and resilient portfolios.