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Global Insurance Market Update

Asia Pricing Q4 2022

Insurance pricing in the fourth quarter in Asia increased 2%, the same as in in the prior quarter.

31/01/2023

Cyber pricing continues to moderate

Insurance pricing in the fourth quarter in Asia increased 2%, the same as in in the prior quarter.

Constant bar chart represents Global Insurance Composite Pricing Change.

Property insurance pricing rose 2%, the same as in the third quarter.

  • Due to continued concerns regarding inflation, insurers maintained focus on updated and validated valuations of assets and business interruption calculations.
  • Underwriters continued to focus on CAT and secondary CAT perils.
  • Renewal results again favoured clients with exemplary claims performance and strong risk management practices.

Casualty insurance pricing declined 1% in the fourth quarter.

  • Casualty pricing in Asia decreased in the fourth quarter for most industry segments; however, some experienced tightening of terms and conditions.
  • The market remained challenging for product recall and US-exposed product liability, with capacity being secured from London subject to its pricing and conditions requirements.
  • Auto liability and workers’ compensation renewals experienced decreased pricing in a number of territories, and held stable in others.
  • Insurers continued to demonstrate caution due to claims inflation resulting from litigation trends and material cost increases.
  • Insurers continued to focus on updating policy wordings, ensuring the application of updated sanctions clauses and exclusions associated with per- and polyfluoroalkyl substances (PFAS), cyber, terrorism, punitive damages, and contractual liability.

Financial and professional lines pricing increased 2%, compared to 5% in the prior quarter.

  • D&O rates began to stabilise, with non-US-exposed businesses experiencing decreases of up to 10%.
  • Additional capacity entered the market; combined with 2022’s low level of IPOs, SPACs, and deSPACs, this generated strong competition on traditional risks.
  • Pricing began to moderate for FIs and was considered stable for large and complex accounts.

Cyber insurance pricing increased 22%, an improvement from recent quarters.

  • Conditions in the cyber market continued to improve as new entrants drove an increase in capacity, markets actively indicated a desire to grow their portfolios, and many clients were able to eliminate sub-limit and coinsurance requirements around ransomware (usually for an additional premium).
  • Clients in specific industries remained vulnerable to wholesale insurer appetite changes to their industry.
    • Due to claims activity, telecommunication clients experienced a pullback in appetite for cyber and tech E&O risk, resulting in pricing increases above average.

Global Insurance Market Index – 2022 Q4

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Global Insurance Market Index

US Pricing

Insurance pricing in the fourth quarter of 2022 in the US increased by 3%, compared to 5% in the prior quarter.
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Global Insurance Market Index

UK Pricing

Insurance pricing in the UK increased 4% in the fourth quarter, compared to 7% in the third quarter.
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Global Insurance Market Index

Latin America and Caribbean Pricing

Insurance pricing in the fourth quarter in the Latin America and Caribbean (LAC) region increased 7%, compared to 5% in each of the prior two quarters.
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Global Insurance Market Index

Continental Europe Pricing

Insurance pricing in the fourth quarter in Continental Europe (CE) increased 6%, the same rate of increase as in the prior three quarters.
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Global Insurance Market Index

Pacific Pricing

Insurance pricing in the Pacific region increased 5% in the fourth quarter, the same as in the prior quarter.