Geography Trends Q1 Asia Pacific

Thailand

Market Dynamics

Q1 Automobile Summary

Overall (Moderate)

As a result of favorable performance, and Office of Insurance Commission regulation, the market remained stable in Q1. Given the regulated nature of Auto in Thailand, insurer have been offering additional services as differentiators.

Pricing (Flat)

Pricing remained flat because Auto coverage is tariff rated and, as local market capacity is sufficient, reinsurance market pricing is minimally impactful.

Capacity (Abundant) Capacity has been abundant as Auto coverage is the predominant policy type in Thailand and virtually all insurers participate in the market.

Underwriting (Prudent) Competition has been healthy and underwriting has been flexible yet prudent.

Limits (Flat) Expiring limits were achieved in most cases.

Deductibles (Flat) Expiring deductibles were achieved in most cases.

Coverages (Stable) Expiring coverages were achieved in most cases. .

A Look Ahead (Stable) As the impacts of COVID continue to impact the economy and driving behaviors, current market conditions are expected to continue.

Q1 Cyber Summary

Overall (Challenging)

Market conditions have been challenging as significant rate increases were imposed, insurer appetites narrowed, and risk continued to become more complex and volatile as cyber events continue around the world. However, awareness has grown, and cyber security and controls have become a top priority for many organizations.

Pricing (>+30%)

Driven largely by ransomware claims and related business interruption, the pricing environment remained very challenging, especially for complex risks.

Capacity (Constrained) Capacity constraints continued as insurer appetite narrowed.

Underwriting (Rigorous) Underwriters have been highly selective and have required extensive, detailed underwriting information.

Limits (Decreased) Insurers have been looking closely as sub-limits and imposing reductions in poor performing areas.

Deductibles (Increased) Deductible increases have been mandated as insurers look to limit their exposure.

Coverages (More Restrictive) Exclusions and limitations - particularly related to ransomware - have been applied.

A Look Ahead (Challenging) As cyber risk – especially, related to ransomware – continues to increase, current market conditions are expected to continue.

Q1 Employers Liability/Workers Compensation Summary

Overall (Moderate)

Market conditions remained stable, with flat pricing and “as expiring” renewal terms. The number of insurers writing this coverage line – and their appetite and available capacity - remained consistent. Some insurers are offering this coverage as an extension of the General Liability policy.

Pricing (Flat)

In the absence of major claims, pricing remained flat.

Capacity (Ample) Based on the outcome of 2022 treaty renewals, capacity has remained sufficient.

Underwriting (Flexible) Underwriting has been stable. Underwriters have been prudent but have applied flexibility as needed.

Limits (Flat) Underwriting guidelines have remained consistent and, as a result, expiring limits were achieved in most cases.

Deductibles (Flat) Underwriting guidelines have remained consistent and, as a result, expiring deductibles were achieved in most cases.

Coverages (Stable) Underwriting guidelines have remained consistent and, as a result, expiring coverages were achieved in most cases.

A Look Ahead (Moderate) In light of favorable portfolio performance and treaty outcomes, current market conditions are expected to continue.

Q1 Trade Credit Summary

Overall (Moderate)

Conditions have stabilized somewhat. Price increases have moderated, and capacity has been generally sufficient; however, underwriters remained cautious in Q1, particularly around potential ongoing impacts from COVID.

Pricing (+1-10%)

Rate increases have been modest overall but have generally been higher for some higher-risk sectors and risks with adverse claims experience.

Capacity (Ample) Capacity has been generally sufficient, although some higher-risk sectors have experienced reduced appetite and constrained capacity.

Underwriting (Rigorous) Underwriters continue to ask more detailed questions regarding the business changes that resulted from COVID-19.

Limits (Decreased) Insurers have carefully re-evaluated limits and reduced them were deemed necessary.

Deductibles (Flat) Expiring deductibles were achieved in most cases.

Coverages (Stable) Expiring deductibles were achieved in most cases.

A Look Ahead (Moderate) Moderate conditions are expected to continue, even as the market becomes more cautious as a result of continued COVID-related financial impacts, escalating oil prices, and uncertainty around the geopolitical events in Eastern Europe.

Q1 Casualty/Liability Summary

Overall (Moderate)

Market conditions have remained stable, with flat pricing, consistent underwriting guidelines, “as is” renewal terms and conditions, and sufficient capacity.

Pricing (Flat)

Flat renewal pricing was achieved in most cases.

Capacity (Ample) Insurers have recently renewed their proportional treaty and have been maintaining current capacity levels.

Underwriting (Prudent) Underwriting remained cautious but when all required information was provided, they were generally accommodating of the terms and conditions requested by insureds.

Limits (Flat) Expiring limits were achieved in most cases.

Deductibles (Flat) Expiring deductibles were achieved in most cases.

Coverages (Stable) As risk quality and performance has generally remained steady, coverage terms and conditions have remained stable.

A Look Ahead (Moderate) Current market conditions are expected to continue.

Q1 Directors and Officers Summary

Overall (Moderate)

International insurers have been demonstrating a preference to participate on excess layers, and, regardless of their participation position, pricing has been higher than local insurers. Local market conditions have been more favorable, particularly for non-US risks. Appetite has been robust, capacity has been sufficient, and price increases have been generally modest. Financial institutions have experienced a more challenging market.

Pricing (+1-10%)

Price increases continued but in most cases have been relatively modest, depending on three key factors: insurer (international vs. local), risk type and industry.

Capacity (Ample) Capacity for renewals remained sufficient while underwriters tended to be more conservative in their capacity offerings for new risks.

Underwriting (Prudent) Underwriting remained generally consistent, although questions related to the management of COVID impacts have become more common.

Limits (Flat) Expiring limits were achieved in most cases.

Deductibles (Flat) While expiring deductibles have been common, deductible decreases were achieved for some well-performing risks.

Coverages (Stable) Expiring coverages were achieved in most cases, although Cyber exposure were a key topic of discussion.

A Look Ahead (Moderate) Current market conditions are expected to continue.

Q1 Property Summary

Overall (Challenging)

Treaty renewals experienced minor changes which have precipitated some rate increases and capacity reductions, particularly for heavy exposed risks such as plastic, paper, rubber, and wood. Poor performing risks have also experienced rate adjustments. In some cases, following insurers have declined to accept lead terms, which has created challenges in achieving positive renewal outcomes.

Pricing (+11-30%)

Rate pressure continued, driven by higher costs of Excess of Loss protection and reinsurer restrictions stipulated in their proportional treaties.

Capacity (Ample) As a result of poor performance, some insurers have withdrawn from some risk types or significantly reduced their available capacity, leaving capacity constrained for some high exposed risks as insurers targeted their capacity toward preferred risks.

Underwriting (Rigorous) Underwriters have demonstrated a strong preference for targeted risk types/those within their treaty capacity.

Limits (Flat) Expiring limits were achieved in most cases.

Deductibles (Flat) Expiring deductibles were achieved in most cases.

Coverages (Stable) Expiring coverages were achieved in most cases.

A Look Ahead (Challenging) Challenging market conditions are expected to continue as insurers focus on improving portfolio performance..

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