Asia commercial insurance prices climbs by 6% in Q3
Meanwhile, global commercial insurance prices increased by 15%.
Commercial insurance pricing in Asia increased by 6%, led by a 17% increase in financial and professional lines pricing in the third quarter (Q3) of 2021, according to a study released by Marsh.
The Philippines, Thailand, and Singapore had the highest increase in Q3 2021.
The study revealed that the financial and professional lines in Asia continue to be a fragmented marketplace, with differentiated pricing between clients. Insurers remained selective on US-listed directors’ and officers’ liability with rate increases ranging from 50% to 100%, displayed a varied appetite for financial institution clients, and focused on risk selection driven by global underwriting guidelines.
Meanwhile, cyber insurance, with ransomware losses as the key driver, faced considerable pressure on pricing and deductibles with a marked reduction in capacity and narrowing of key coverages.
Property insurance pricing rose by 5%—the 12th consecutive quarter of increases and lower than the 7% increase in the previous quarter. The continued slowdown in pricing compared to previous quarters is a trend expected to continue into 2022 barring any major loss activity. Capacity remained available, but challenges remained for clients in high hazard industries, natural catastrophe or CAT zones, and those with poor loss histories. Casualty insurance pricing increased 1%, remaining relatively flat as it has for three years with sufficient capacity, although risk selection was more pronounced and challenges existed in product recall and products liability.
“Whilst the risk and insurance landscape remains challenging around the world, we expect rates to continue to moderate in most lines. However, the pressure on rates in cyber insurance is likely to continue,” Lucy Clarke, President of Marsh Specialty and Marsh Global Placement said.