Cyber insurance rates in Asia surged by 8% in the second quarter of the year, the same rate it had in the previous quarter, according to the latest market index from leading broker Marsh.
This high uptick for the line in Asia pales in comparison to global cyber rates, which only saw an increase of 1% over the 11% it sported the prior quarter. It is also a marked improvement over the 28% rise it saw in Q4 2022, a decrease which Marsh attributed to significant moderation in the US.
According to the index, Asia’s high cyber rates can be attributed to continued insurer concerns over ransomware. That said, while the rates are still climbing, there is a reduction in claims frequency as risk management for companies in the region improved.
While pricing was relatively consistent across all regions in Q2, global commercial rates hiked up by 3%, down from its 4% rate in Q1. In Asia, property insurance pricing also increased by 2%, the same rate it had for the past five quarters. This, however, was a better turnout compared to the global property insurance pricing which kept the same sky-high increase of 10% from its previous quarter.
Meanwhile, financial and professional lines had a better time. Global financial and professional lines saw a decrease in pricing of 8% in Q2, an improvement over its 5% fall in Q1. Asia’s rates for this line declined 5% after being flat in the prior quarter.
“While the continued moderation in cyber and D&O insurance is a highly positive development for our clients, the continued increases in the property market, specifically property catastrophe, remain an area of concern for our clients, and of focus for us,” Marsh Specialty and Global Placement president Pat Donnelly said. “As we move through the second half of 2023, we are working with clients to explore a broad range of options that will help them navigate the challenges ahead amid ongoing economic, inflationary, and geopolitical uncertainty, and achieve optimal outcomes from the insurance market.”
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