Read the latest edition of AIR and MEIR as an Interactive e-book


Jun 2020

Asia: Composite pricing shows biggest increase in 5 years

Source: Asia Insurance Review | Sep 2019

Insurance pricing in the second quarter of 2019 in Asia increased by nearly 4% year-on-year, the largest composite increase in the region in five years, according to Marsh’s Global Insurance Market Index 2019 for the second quarter of this year. 
Property insurance pricing rose 5% as international carriers sought pricing increases across the region. 
  • CAT pricing increased double digits in several Asian countries including Singapore, Hong Kong and India. 
  • Non-CAT pricing showed variability in the region, ranging from single-digits decreases to single-digit increases. 
  • CAT losses in 4Q2018 hit many insurers’ profitability, and price corrections have occurred at an accelerated pace. Certain Lloyd’s Syndicates have withdrawn from lines of business, impacting the Singapore hub.
Casualty pricing declined 0.4%, continuing a trend toward stable after several years of moderate decreases. 
  • The moderation of casualty pricing was due in large part to increased pricing in auto/motor liability which consistently ranged from the low- to mid-single digits. 
  •  Increases in auto pricing were generally balanced by decreases in general liability observed across the region, with pricing down as much as 10% in some countries.
Financial and professional liability pricing increased 3%, with insurer capacity restrictions and reduced appetite, although capacity in Asia remains more than adequate for the majority of risks. 
  • There were challenges in some limited segments — mainly D&O risks with US listings — and particularly for China-based risks. 
  • Insurer competition started to decline for financial institution clients, especially on risks with claims or notification activity.
  • Cyber insurance pricing generally held flat on renewals. There are signs of more cautious underwriting and higher prices being sought on new business. A 
| Print | Share

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.


Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.