Insurance pricing in the first quarter of 2020 in Asia increased 6% year-over-year, according to a report by Marsh in its report titled “Global Insurance Market Index Q1 2020”.
Property insurance pricing rose 8% in Asia. The highlights are:

• Property pricing in Asia has steadily increased over the last five quarters.

• Hong Kong and Singapore experienced double-digit increases in both CAT and non-CAT exposures.

• Lack of competition continued to be a factor for large and complex property placements, driving pricing increases.

Casualty pricing was flat in the first quarter.

• For an eighth consecutive quarter, casualty pricing was generally flat, following several years of moderate decreases.

• Slight increases in auto/motor liability in many Asian countries were offset by minor decreases in general liability.

Financial and professional liability pricing rose 8%, the largest increase observed in several years and the fourth consecutive quarter of increases.

• Pricing increased in China, Hong Kong, India, Indonesia, Japan, Korea, and Singapore for D&O, FI, and professional liability.

• International insurers have reduced capacity, and held to pricing increases.

• Reduced appetite was seen from insurers to compete on FI, especially on risks with claims or notification activity where pricing is firming.

Global market

Globally, commercial insurance prices rose by 14% in the first quarter of 2020, the 10th consecutive quarter of price increases. Although the COVID-19 global pandemic had an insignificant impact on pricing in the first quarter, the reported increase was the largest year-over-year increase in the Marsh Global Insurance Market Index since its inception in 2012.

Marsh said, “We anticipate that COVID-19 will likely have an impact on pricing for the balance of 2020.”


 

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