, APAC
/Dan Cristian Padure from Unsplash

Asia’s Q3’23 insurance pricing flat for the second quarter in a row

Overall pricing for the third quarter remained flat, similar to the previous quarter.

In the third quarter, insurance pricing in Asia remained unchanged compared to the previous quarter. 

According to a Marsh report, property insurance pricing saw a consistent 2% increase over the past six quarters, with some countries like China and Korea witnessing minor pricing decreases offset by increases due to catastrophe exposure in the region.

Whilst most domestic insurers reported profitability in their first-half results for 2023, some remained cautious due to the recent extreme weather patterns in North Asia during the late third quarter. 

Clients in catastrophe-prone areas faced heightened scrutiny from insurers.

Casualty insurance pricing, on the other hand, declined by 2% for the fourth consecutive quarter. This decline was attributed to ample capacity, competition between international and local companies, and reduced turnover for many insureds. 

Casualty insurers paid close attention to their exposure to the US market, particularly regarding large awards and settlements. Rates for workers' compensation and auto liability were competitive across various countries.

ALSO READ: Asia’s insurance pricing ‘flat’, cyber coverage demand rise in Q2

In the financial and professional lines sector, pricing declined by 3% during the quarter, following a 5% decrease in the previous quarter.

Directors and Officers (D&O) rates continued to decline, with significant reductions in several countries. Increased appetite and capacity from local markets for US-listed companies led to pricing competition and, in many cases, reduced rates. 

The financial institution sector witnessed stable pricing with improved terms and coverages offered by insurers.

Cyber insurance pricing remained unchanged in the quarter after an 8% increase in the previous quarter. This stability was attributed to a growing risk appetite and capacity in the market. Underwriters continued to focus on cybersecurity controls, with particular attention to areas like war perils due to ongoing geopolitical tensions. 

Ransomware severity and the sophistication of malicious actors continued to rise, with data encryption and business interruption being the most significant contributors to losses.

 

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

APAC emerges as leader in renewables insurance
RE is projected to account for 45% of global electricity generation by 2030.
Insurance
IFRC-DREF triggers insurance payout after disaster relief demands exceed threshold
The policy provides up to $16.92m in coverage.The International Federation of Red Cross and Red Crescent Societies' Disaster Response Emergency Fund (IFRC-DREF) has triggered its first-ever insurance payout after disaster relief demands exceeded its deductible threshold. 
Insurance