Insurance rates decline in Q1’24

Rates in catastrophe-exposed regions were stable despite declines.

In the first quarter of 2024, insurance rates in Asia experienced a 2% decline, marking a departure from the flat trend observed in the preceding three quarters, Marsh reported.

Property insurance rates saw a 1% decrease, driven by declines in several countries and industries, Marsh's latest Asia Insurance Market Rates report showed.

However, rates remained stable in catastrophe-exposed geographies like Japan, Taiwan, and the Philippines, as well as in industries with significant business interruption exposure such as technology. 

Clients in these segments typically managed risk by adjusting deductibles or utilising alternative risk transfer methods like captives or parametric solutions.

Casualty insurance rates also declined by 1%, with the liability insurance market maintaining stability overall. 

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Underwriters focused on scrutinising North American exposures and critical products, while cyber coverage for business interruption and property damage remained a key focus area.

Financial and professional lines rates experienced a notable 6% decline, attributed to increased competition and improved terms and conditions. 

Appetite for public company D&O liability with US exposure saw improvements in price and deductibles, although challenges persisted in the digital assets business, particularly related to crypto assets.

Cyber insurance rates decreased by 3%, with underwriters prioritising companies with strong risk controls and discussions on expanding coverage options.

Insurers remained vigilant about ransomware and supply chain attacks, reflecting ongoing concerns in the cybersecurity landscape.