Insurance pricing in the third quarter of 2019 in Asia increased by 5% year-over-year, the largest composite increase in the region in five years, says the 3Q2019 Marsh Global Insurance Market Index.
Property insurance pricing rose 6%, with international carriers seeking increases across the region.
CAT pricing in several Asian countries — including Singapore, Hong Kong, and India — increased by double digits.
CAT losses from the fourth quarter of 2018 in the region impacted insurer’s profitability, with price corrections occurring at an accelerated pace.
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 auto/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.
Financial and professional liability pricing increased 5%, the largest increase observed in several years.
Overall capacity remains adequate for the majority of Asian risks.
The financial and professional line is starting to experience firming in some limited segments, primarily Asia D&O risks with US listings.
Insurer appetites to compete on financial institution business generally declined, especially for risks with claims or notification activity where pricing is firming.
Asia’s overall insurance price increase in 3Q2019 was slower than that globally where insurance prices rose by 8% during the same period. Globally in the third quarter: pricing increased in all three major product lines — property, casualty, and financial and professional liability — for the second straight quarter. Property insurance pricing increased by 10%. Casualty pricing increased by 1%. Financial and professional liability rose by nearly 14%.