Pricing in second quarter mirrors prior quarter
Insurance pricing in the second quarter of 2022 in Asia increased 3%, the same as in the prior quarter.
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Property insurance pricing rates rose 2%, the fifteenth consecutive quarter of increase.
- Pricing increases were most acute for clients with poor loss histories.
- Pricing increases for natural catastrophe exposures continued to be above the average.
- Mid-market diversification for insurers brought increased competition.
Casualty insurance pricing was flat, following increases of 2% in the prior two quarters.
- Insureds with good loss histories generally experienced flat pricing, while those with poor loss histories experienced increases.
- Insurer risk selection in challenged industries contributed to reduced capacity and increased pricing.
- Insurers frequently restricted capacity on excess layers; challenges are more pronounced for product recall and products liability exposures.
Financial and professional lines pricing increased 13%, the same as in the prior quarter.
- The average rate of increase for D&O ranged from 10% to 15%.
- Capacity challenges remained for US listed or exposed insureds and for certain sectors and countries.
- Pricing for FIs started to moderate; insurers continued to manage capacity and retention levels.
- The cyber insurance market remained challenging, with increases generally ranging from 25% to 50% due to ransomware, claims, global market conditions, systemic risk concerns, and geopolitical tensions.
- Insurers continued to demonstrate caution regarding digital asset/cryptocurrency related companies.
- Professional indemnity pricing increased in the 10% to 15% range for large programs.
