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.
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.”