Pace of increase continues to decline
Insurance pricing in the first quarter of 2022 in Asia increased 3%, down from 4% in the prior quarter, as price increases continue to moderate.
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Property insurance pricing rose 2%, down from 3% in the fourth quarter of 2021.
- Insurer competition continued to focus on loss-free clients in low-hazard industries.
- The market remained challenging for clients in CAT zones, high-hazard industries, and those with poor loss histories.
- Clients in high-hazard industries and those with poor loss histories had above average increases.
Casualty insurance pricing increased 2%, as it did in the fourth quarter of 2021.
- Large losses drove insurer behaviour, and accounts with high claims frequency typically had more difficult placements.
- Insurers started to show concern about claims inflation during the quarter.
- Capacity continues to be plentiful in the region, however, multinational insurers are restricting capacity on excess layers. These challenges are more pronounced with product recall and products liability exposures.
Financial and professional lines pricing increased 13%, down from 17% in the prior quarter.
- Capacity challenges remain for US-listed and US-exposed business.
- Pricing has begun to moderate for financial institutions, though insurers continued to manage capacity and retention levels.
- The cyber market remained challenging, with ransomware placing considerable pressure on premiums; insurers looked to manage the risk while growing their respective portfolios.
- Professional indemnity (PI) insurers showed a willingness to retail customised offerings for small- to mid-size clients. Large PI programs, however, saw rate increases — particularly within the communications, media, and technology industry.
