Asia commercial insurance prices climb 2% in Q4 2022: report
The region has the smallest increase in prices globally.
Asia experienced a 2% increase in composite pricing in the fourth quarter of 2022, the same rate as the quarter before, a report by Marsh revealed.
In the Asia Insurance Market Pricing: 2022 Fourth Quarter report, Asia lagged behind its regional counterparts, with Latin America and the Caribbean showing the highest price climb at 7%.
Property insurance pricing in Asia increased by 2%, the same rate as three quarters prior. The report said that regionally, both catastrophe and non-CAT perils remained an underwriting focus due to losses in the third and fourth quarters.
Meanwhile, casualty pricing in Asia decreased by 1% in the fourth quarter for most industry segments; however, some segments saw some tightening of terms and conditions.
Financial and professional lines pricing increased 2%, compared to 5% in the third quarter whilst cyber insurance pricing showed signs of improvement in the quarter, as pricing increases moderated to 22%.
“Cyber insurance stabilisation was also indicated by new market entrants and capacity, insurers indicating a desire to increase business, and the ability to eliminate sub-limits and coinsurance requirements around ransomware,” Marsh said.
Global commercial insurance prices increased 4% in the fourth quarter of 2022, down from a 6% increase in Q3 and a 9% increase in Q2.