Asia’s prices increase at highest pace in 5 years: MarshNovember 12 2019 by Andrew Tjaardstra
Driven by global trends, insurance pricing in the third quarter of 2019 in Asia increased by 5% year-over-year, in the largest composite increase in the region in five years.
According to Marsh’s Global Insurance Pricing Index, property insurance pricing rose 6.5%, with international carriers seeking increases across the region; nat cat pricing in several Asian countries — including Singapore, Hong Kong, and India — increased by double digits.
Cat losses, such as from Typhoon Jebi, from the fourth quarter of 2018 in the region impacted insurer’s profitability, with price corrections occurring at an accelerated pace.
Meanwhile, non-cat pricing showed variability, from single-digit decreases to single-digit increases. Casualty pricing increased by 1%, and continued to trend toward stable after several years of moderate decreases.
The moderation of casualty pricing was largely due to increases in motor liability reported in most Asian countries; these increases were consistently in the low to mid-single digit range.
Decreases in general liability were observed across the region, with pricing down as much as 10% in some countries.
Asia’s financial and professional liability pricing increased 5% – the largest increase observed in several years.
Overall, global commercial insurance pricing increased for the eighth consecutive quarter in the third quarter of 2019.
The Pacific region had the largest composite pricing increase in the index (19%), a quarterly trend that has continued for almost three years. Pacific composite pricing was driven by increases in D&O rates, after a flurry of investigations into financial services firms’, as well as increases in property rates.
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