Asia insurance rates

Financial and professional lines rates decline, led by D&O

Financial and professional lines rates declined 9%.

• Directors and officers (D&O) liability rates continued to drive conditions in the overall financial and professional lines.
  • Ample available capacity for D&O coverage led to increased competition.
  • Some markets - including China, Hong Kong, South Korea, and Singapore - experienced average double-digit rate decreases in D&O liability renewals.
• A lack of activity in the capital markets has limited insurers' opportunities for new business, resulting in increased competition at renewal.
• Rates for financial institutions (FIs) and professional indemnity (PI) insurance declined in the 10% to 15% range, on average.

Cyber rates decline, controls improve

Cyber insurance rates decreased 6%.

• New capacity in the Singapore market and growing interest from the London market contributed to increased capacity and competition.
• Underwriters continued to require strong cybersecurity controls and/or plans for improvements.
  • Insurers were generally more flexible in how cybersecurity-related information was delivered to them.
• Insurers continued to increase their focus on risks associated with AI usage.
• Insurers were generally more willing to offer broader coverages.