Cyber remained the most challenging coverage area in Asia , driven by ransomware claims, with considerable pressure on pricing and deductibles, a reduction in capacity, and narrowing of key coverages, said Marsh
Hong Kong:
Insurance pricing in the fourth quarter of 2021 in Asia increased four per cent year-over-year, continuing a slowing of increases that began in the third quarter of 2020, according Marsh.
Global commercial insurance prices rose 13 per cent in the fourth quarter of 2021, a decline from the 15 per cent increases in both the second and third quarters. Global pricing increases peaked in the fourth quarter of 2020 at 22 per cent , and slowed or remained flat throughout 2021, said Marsh..
Cyber insurance pricing again rose significantly — for example, increasing 130 per cent in the US and 92 percent in the UK.
Property insurance pricing in Asia rose three per cent , down from five per cent in the third quarter. Elements of insurer competition continued to return, focused on loss-free clients in low-hazard industries.
The market remained challenging for clients in CAT zones, high-hazard industries, and those with poor loss histories.
Casualty insurance pricing in Asia increased 2 per cent, a slight uptick from three years of relatively flat pricing. Clients with high claims frequency typically had more difficult placements, said Marsh.
Capacity continued to be plentiful in Asia ; however, multinational insurers restricted capacity on excess layers, particularly with product recall and products liability exposures, said Marsh.
Financial and professional lines pricing rose 17 per cent in Asia, the same as in the third quarter. Insurers in Asia focused on risk selection, with D&O accounting for a significant portion of pricing increases.
Cyber remained the most challenging coverage area in Asia , driven by ransomware claims, with considerable pressure on pricing and deductibles, a reduction in capacity, and narrowing of key coverages, said Marsh.